18th Oct 2005 06:00
18 October 2005 ASHTEAD GROUP PLC SUNBELT ACQUIRES FIVE RENTAL STORES Significantly strengthens presence in central and southern California Ashtead Group plc, the equipment rental group serving the US and UKconstruction, industrial and homeowner market, announces that its USsubsidiary, Sunbelt Rentals, has acquired Northridge Equipment Services Inc("Northridge") from the Groff family for a total consideration of $69.6 million(‚£39.7 million).Northridge operates five rental stores in southern and central California basedin Northridge (northern Los Angeles), Bakersfield, Lompoc, Fresno and Palmdale.Its market coverage includes a geographic area with a population of over 13million (c37% of California's total population) containing three of the top 65metropolitan areas in the US. In the year to 30 September 2005 Northridgereported total revenues of $38.3 million, EBITDA of $12.9 million, EBITA of$6.4 million and profit before tax of $6.2 million. The book value of its totalassets at that date was $38.6 million and the business has been acquired debtfree. The acquisition consideration was financed through the Group's existingcredit facilities. Excluding certain one time costs and gains which will not beincurred in future, Northridge's adjusted EBITDA for the year ended 30September 2005 was $14.8 million and the ratio of the consideration to adjustedEBITDA was 4.7 times.This acquisition brings the number of stores operated by Sunbelt in the centraland southern California markets to 10. Since the start of our financial year on1 May 2005, Sunbelt has now acquired a total of 15 stores whose annual revenuesexceed $64 million and has opened a further three new stores on a greenfieldbasis.George Burnett, Ashtead's chief executive commented:"Northridge is a strong business with five stores which are well established intheir local markets. Its acquisition significantly strengthens Sunbelt'spresence in central and southern California and continues our strategy offocusing on the development of significant clusters of conveniently locatedstores in attractive markets. We have invested $100 million so far this year onacquisitions that extend Sunbelt's presence in attractive US markets."Contacts:Cob Stenham Non-executive chairman 020 7299 5562George Burnett Chief executive )Ian Robson Finance director ) 01372 362300Brian Hudspith Maitland 020 7379 5151ENDASHTEAD GROUP PLCRelated Shares:
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