Press Release |
8 November 2017 |
Vp plc
('Vp' or the 'Group')
Acquisition of Brandon Hire Group Holdings Limited
Vp plc, the equipment rental specialist, today announces the acquisition of the entire issued share capital of Brandon Hire Group Holdings Limited and its subsidiaries ('Brandon Hire') for a cash consideration of £41.6 million payable on completion and assumed net debt of approximately £27.2 million. The acquisition has been funded from new banking facilities with the Group's lenders.
Established in 1971, Brandon Hire is a major national tool and equipment hire business with over 900 employees, which operates from a network of 143 locations across the UK. Brandon Hire has an extensive customer base focused predominantly on small to medium sized enterprises ('SMEs') operating in regional and local geographic markets.
A well established, profitable business, Brandon Hire operates a full range of tool hire equipment with an operational model which is closely aligned to Vp's own specialist tool hire business, Hire Station.
The combination of the two businesses will, over the medium term, deliver economies of scale in purchasing and operations and will create a leading specialist tool hire business within the UK division of Vp plc.
For the year ended 31 December 2016, Brandon Hire's revenues were £79.8 million, generating profits before interest, tax, exceptionals and amortisation of £6.0 million from gross assets of £50.6 million.
Commenting on the acquisition of Brandon Hire, Jeremy Pilkington, Chairman of Vp plc, said: "The acquisition of a well established business of the size and quality of Brandon Hire is a significant development for Vp. We have, over recent years, developed an industry leading specialist tool hire business in the UK. This transaction represents a major step change in the scale and scope of our specialist tool hire offering.
The Vp and Brandon Hire business cultures are closely aligned and we look forward to working with all of the Brandon Hire employees in developing the business further over the coming years."
Neil Stothard, Chief Executive of Vp plc, said: "Brandon Hire is a long established, well managed profitable business which is an extremely positive addition to the Vp group. With an extensive branch network, Brandon Hire is an excellent geographic fit with our current specialist tool hire operations and we expect this acquisition to be earnings enhancing to the Group in the first twelve months of ownership."
As previously announced, Vp's Interim Results for the six months ended 30 September 2017 will be announced on Tuesday, 21 November 2017.
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For further information:
Vp plc |
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Jeremy Pilkington, Chairman |
Tel: +44 (0) 1423 533 400 |
Neil Stothard, Chief Executive |
www.vpplc.com |
Allison Bainbridge, Group Finance Director |
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Media enquiries: |
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Buchanan |
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Henry Harrison-Topham / Jamie Hooper / Maddie Seacombe |
Tel: +44 (0) 20 7466 5000 |
[email protected] |
www.buchanan.uk.com |
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Notes to Editors
Vp plc is a specialist rental business providing products and services to a diverse range of markets including infrastructure, construction, housebuilding and oil and gas, both in the UK and overseas.
The Group comprises a UK and an International division:
UK
Groundforce
Excavation support systems and specialist products for the water, civil engineering and construction industries primarily in the UK, but also in the Republic of Ireland and mainland Europe.
Hire Station
Tools and specialist products for industry, construction and home owners.
Torrent Trackside
Infrastructure equipment and services for the railway renewals and maintenance industry.
TPA
Portable roadway access solutions to the transmission, outdoor events, construction and utility sectors in the UK, the Republic of Ireland and mainland Europe.
UK Forks
Rough terrain material handling equipment for the housebuilding, general construction and industrial markets.
International
Airpac Bukom Oilfield Services
Equipment and service providers to the international oil and gas exploration and development markets.
TR Group
Specialist rental of test & measurement, communications and audio visual equipment in Australia, New Zealand and Malaysia.
Further information is available at www.vpplc.com/investors
