11.07.2012

Vp acquires Balfour Beatty operations

UK rental company Vp has acquired the business and assets of two equipment rental units from contractor Balfour Beatty for £4 million in cash.

UK Forks, Vp’s telehandler rental business will take over Balfour Beatty's plant rental business, which operates from depots in Croydon and Exeter.

At the same time the group’s Hire Station general rental operation has acquired Balfour Beatty's survey, safety and communication equipment rental business, which operates from locations in London and Glasgow. The deal includes a minimum three year framework agreement for the supply of these services to Balfour Beatty in the UK.

Both acquisitions will be integrated into the two divisions. Vp chief executive Jeremy Pilkington said: “These acquisitions represent important developments for Hire Station and UK Forks and we look forward to further strengthening our business relationship with the Balfour Beatty group following this transaction."

Vertikal Comment

This is a nice ‘bolt on’ acquisition for Vp helping expand its two operations while locking in one of the UK’s more dynamic contracting and engineering companies to some of its services.

While the market penetration of rental in the UK is the highest in the world it is surprising how much equipment remains in the hands of large contractors. With the current trend to lock these big companies into national agreements on the part of the larger rental companies we can expect to see more of this type of deal as rental companies strive to maintain their share of the major contractor market.