1st Jul 2005 13:16
Gleeson(M J)Group PLC01 July 2005 M J GLEESON GROUP PLC Establishment of an Exclusive Five-Year Supply Contract Gleeson, the construction services, homes and property group, announces that ithas entered into an innovative, exclusive five-year supply agreement withsubsidiaries of Speedy Hire Plc, under which it will source the vast majority ofits hired plant requirements from Speedy Hire, which will also provide adedicated hire desk facility. The agreement, which will substantially increase Gleeson's business with SpeedyHire across all Speedy businesses, will provide a value added service andimprove the cost-effectiveness and efficiency of Gleeson's plant procurement. Aspart of the transaction, Speedy Hire will acquire the plant assets of GL PlantLimited, Gleeson's plant hire subsidiary, which supplies plant, on anon-exclusive basis, to Gleeson companies but does not trade with externalcompanies. The value of the assets which are the subject of the transaction as at 30 June2004 was £4.2m. The consideration will amount to £8.2 million, payable in cashon completion, and will be invested in Gleeson's cash consumptive activities ofhousebuilding and property. Tony Collins, Managing Director of Gleeson Construction Services, said: "I amdelighted that we have been able to negotiate this arrangement with Speedy Hire,which will provide the Group with considerable benefits over the next five yearsand is consistent with our strategy of improving operational and financialefficiency in our core activities." Enquiries:M J Gleeson Group plc 020-8644 4321Dermot Gleeson (Chairman)Terry Massingham (Chief Executive)Tony Collins (Managing Director of Gleeson Construction Services) Bankside Consultants LimitedCharles Ponsonby 020-7367 8851 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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