Speedy Hire sells business for £34.9m

TOOL-rental firm Speedy Hire plans to sell its loss-making accommodation hiring business to a unit of modular space provider Algeco Scotsman in a cash deal for £34.9m ($57.6m), to reduce its debt pile.
By The Newsroom
Published 26th Apr 2011, 09:51 BST

The company, which had a net debt of about £80m as on March 31, said the disposal would result in a £16m exceptional loss on sale.

Speedy’s accommodation hiring business provides a range of temporary accommodation and storage units, both portable and modular, for hire or sale.

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For the financial year ended March 31, 2010 the unit had an adjusted operating loss of £2.1m and contributed about 12 per cent to the company’s total revenue.

Speedy and Algeco Scotsman’s UK subsidiary Elliott Group will also enter into a three-year agreement to provide integrated services that combines the expertise of both companies.

Elliott Group has five Yorkshire offices - in Cleckheaton, Wakefield, Sheffield, Bridlington and Hull.

The company, which provides services to construction, manufacturing, industrial and rail companies, said the deal would be completed by April 30.

The disposal would also enable the company to focus on core operations and further develop its non-hire services.

Related topics:WakefieldHullBridlingtonSheffieldCleckheaton