16.08.2004

Coates Sell bulk of UK business

Coates Hire Limited of Australia announced today that it has sold the onshore rental business of Coates Rentair its UK operation, to Speedy Hire PLC.

Coates will retain its offshore operations, which provide specialist air compressors and steam generators to the worldwide oil and gas market from its base in Aberdeen.

The business sold to Speedy which comprises eight branches and two other locations will be incorporated Into Speedy Power, while the offshore business that Coates is retaining will continue to trade under the Rentair name.

The “onshore” business represents around 60 percent of Rentairs £9 million turnover.

Speedy has paid £6.65million in cash for the Rentair assets that it is acquiring, creating a loss on book value for Coates of around £2 million before tax.

Coates purchased Rentair PLC in March 1999 for $A 59 million (£22 million) and then went on to buy Birse Plant Hire in Aberdeen later that year. It is largely the Birse part of the business that Coates are retaining,
.
Following the sale, Andy Webb, a long-serving Coates UK
executive, will assume the role of General Manager of Coates Rentair, and will be supported by John Stewart, Sales Manager and Alan Leslie, Operations Manager both of whom have extensive offshore expertise.

Kieran White, the current Coates UK Managing Director, will
relocate to Sydney to assume the role of General Manager Coates Conrent,

Vertikal Comment

When Coates purchased Rentair in 1999 it surprised many in the UK rental industry, who assumed that it represented a toe-hold in the UK market for the large Australian company, allowing them to expand into other areas such as powered access. Coates, who acquired Wreckair another major Australian hirer in 2001, operate a fleet of over 3,000 aerial lifts placing them in the top 20 access fleets worldwide.