HSS Hire to sell Irish plant hire business for €11.2m
Tool and equipment hire company HSS Hire has agreed to sell its Irish large plant hire business, Laois, to Briggs for €11.2m in cash.
The proceeds will be used to invest in the core tool hire business, in line with the group’s strategy.
HSS said that with Laois representing around 4% of group revenue for the year ended 28 December 2019, the consideration represents an "attractive" valuation for shareholders.
As part of the deal, HSS has also entered into a commercial agreement with Briggs for the cross hire of equipment to ensure the broadest possible distribution of, and customer access to, the parties existing fleets.
Ahead of its full-year on 26 April, HSS said trading was in line with management expectations and it has seen "encouraging" momentum in the first three months of 2021. Earnings before interest, tax and depreciation for the period to 3 April 2021 are "comfortably ahead" of the comparable prior year period, it said.
Chief executive Steve Ashmore said: "Over the last four years, we have made substantial progress against all three of our strategic priorities: to de-lever the group, transform the tool hire business and strengthen our commercial proposition.
"During this time we have transformed HSS to a modern, agile, technology-driven business, improving trading, reducing cost and increasing the overall profitability of the group. Today's announcement is another step forward on our strategy, enabling us to increase focus on our core tool hire business."