Vp PLC Acquisition of Brandon Hire Group Holdings Limited (8834V)
November 08 2017 - 2:00AM
UK Regulatory
TIDMVP.
RNS Number : 8834V
Vp PLC
08 November 2017
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 GBP41.6 million payable on completion and
assumed net debt of approximately GBP27.2 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 GBP79.8 million, generating profits before interest, tax,
exceptionals and amortisation of GBP6.0 million from gross assets
of GBP50.6 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.
- Ends -
For further information:
Vp plc
Jeremy Pilkington, Chairman Tel: +44 (0) 1423
533 400
Neil Stothard, Chief Executive www.vpplc.com
Allison Bainbridge, Group Finance
Director
Media enquiries:
Buchanan
Henry Harrison-Topham / Jamie Tel: +44 (0) 20
Hooper / Maddie Seacombe 7466 5000
Vp@buchanan.uk.com www.buchanan.uk.com
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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