17.05.2012

HSS up for sale?

The owners of UK based general rental company HSS – Aurigo and Och-Ziff capital have appointed Lazards to review potential options for the business, including a possible sale or flotation.

We also understand that Price Waterhouse Coopers has been retained to handle any due diligence work involved with a sale.

The two companies paid £310m for HSS in 2007 and are likely to be looking for a significantly higher sale price, given the improving market and company fortunes.

HSS reported revenues of £180.2 million, last year five percent higher than in 2010, while earnings grew three percent to £39.8. However the fourth quarter grew at a slower pace. The company has expanded its powered access fleet and was third largest in last year's Cranes & Access Top 30 UK access rental companies, with 4,217 units.

Chief executive Chris Davies and his management team own around 10 percent of the business and are keen to expand the business in order to maintain the recent progress. Commenting on the appointment he said: “We have grown well in a tough market and want to take the next step now. It could lead to anything from an investment to an outright sale. The process is well under way.”

Lazard’s says that it has already received various expressions of interest from potential trade and private equity buyers.