(Alliance News) - Speedy Hire PLC on Tuesday said it has agreed to acquire Green Power Hire Ltd for GBP20.2 million from Green Power's principal shareholder Russell's Ltd and four other shareholders, as it also announced a trading update.
The Merseyside, England-based tool and equipment hire services firm said the consideration represented GBP10 million in equity value and GBP10.2 million of assumed debt, which was settled upon the completion of the transaction.
The firm said Green Power is a owner and supplier of battery storage units to the UK rental market.
It added that the acquisition will place it as a "market leader in a key growth segment", while also allow Green Power to continue to grow its business with access to Speedy's customer base, data & AI capabilities and investment.
Chief Executive Dan Evans said: "The acquisition of Green Power Hire is further evidence of our Velocity strategy in action, strengthening our market leadership in combining product innovation and sustainability, and positioning Speedy well in a high growth segment of the market.
"Alongside investments such as our partnership with Niftylift and our proposed JV with AFC Energy, the acquisition progresses the sustainable and technological evolution of the sectors we operate in, supports our ambitious plan to become a net zero business by 2040 and will deliver long term benefits to our customers, our people and our investors."
Separately on Tuesday, the firm said its performance in the first half has been "satisfactory", as it reported a 5% rise in revenue from national customers. However, it said regional revenue has fallen.
Service revenue is anticipated to fall by 20% due to declining fuel prices, the company said, but added that this will not affect its margin.
The firm noted that it expects revenue and profit to be weighted towards the second half of the year, with winter programmes set to begin, as well as newly won or extended contracts expected to mobilise during the period.
Its full-year performance is expected to meet expectations, Speedy added.
Speedy Hire shares rose 2.2% to 32.00 pence each on Tuesday morning London.
By Harvey Dorset, Alliance News reporter
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