Harrogate-based Vp plc, the equipment rental specialist, announced the acquisition of Brandon Hire Group Holdings Limited and its subsidiaries for £41.6 million in cash and assumed debt of £27.2 million.
The acquisition has been funded from new banking facilities with Vp’s lenders.
Established in 1971, Brandon Hire is a national tool and equipment hire business with more than 900 employees, which operates from a network of 143 locations across the UK.
“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,” said Vp.
“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.”
Vp chairman Jeremy Pilkington 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.”
Vp CEO Neil Stothard 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.”