Grafton Group has agreed to acquire the entire issued share capital of HSS Hire Ireland Limited from HSS Hire Group for €31.6m (c. £26m) on a cash and debt free basis.
HSS Hire Ireland is a tool and equipment hire specialist operating from four branches and four customer distribution centres in the Republic of Ireland, offering an extensive range of conventional hire products as well as specialist equipment with a particular focus on powered access.
Grafton plans to operate the HSS Hire Ireland business as part of Chadwicks, its distribution business in the Republic of Ireland. Chadwicks also operates the complementary Sam Hire brand which focuses on smaller plant and tool hire from 23 locations across the Chadwicks branch network.
Grafton sees the acquisition as an opportunity for Chadwicks to offer a comprehensive national hire service to its customers from small DIY jobs through to large civil works.
HSS Hire Ireland generated revenue of £27m last year and adjusted unaudited Ebita of £3.9m.
Grafton Group chief executive Eric Born said: “We are pleased to have agreed to acquire HSS Hire Ireland which is a well-respected tool and equipment hire business and brand with a strong and experienced management team. This transaction is in line with Grafton’s strategy to strengthen our market positions in existing and adjacent markets and will broaden the offering of our Chadwicks business in the Republic of Ireland where we continue to see compelling opportunities for further growth.”
For HSS, the sale follows the restructuring of the group last year into two separate entities, HSS ProService (Pro) and HSS The Hire Service Company (THSC), as standalone businesses under separate leadership teams.
Steve Ashmore, executive chair of HSS ProService and director of HSS Hire Group, said of the Ireland sale: “This transaction realises an attractive valuation for our shareholders and is a reflection of our continued strategic progress towards creating a more focused business with two distinct divisions well positioned to deliver enhanced returns when UK construction improves.”
The acquisition remains subject to approval from the Competition & Consumer Protection Commission (CCPC) in Ireland.
Got a story? Email news@theconstructionindex.co.uk
#HSS #quits #Ireland