26.10.2012

Exponent acquires HSS

HSS Hire Services Group, one of the UK’s largest equipment rental companies has been acquired by Exponent Private Equity - the transaction value has not been disclosed.

HSS has been owned by Och-Ziff and Perry Capital for the last five years with revenues of £180.3 million last year, five percent up the prior year, with profits of £39.9 million. Founded in 1957 it employs 2,000 at 230 locations.

Exponent Private Equity invests in businesses in the UK and Ireland supporting management buy-outs. The HSS management team which already owns a share of the equity will retain its investment in the business and is supporting the deal.

HSS chief executive Chris Davies said: “HSS is enjoying great success and the company continues to go from strength to strength. This transaction and future support from Exponent will help us unlock fresh capital needed to realise the next phase of our growth plan. Having traded successfully and expanded consistently during the last four years, this deal puts HSS in a strong financial position”.

“HSS has been owned by asset management funds Och-Ziff and Perry Capital since 2007 under the chairmanship of Archie Norman. I would like to thank Archie, Och-Ziff and Perry Capital for their support over the last five years.”

Oliver Bower, director at Exponent said: “We have followed HSS and the progress of its management team for some years now. It is clear that under Chris and his team’s leadership the business has made excellent progress against its strategic development plan and is well positioned as a trusted partner and service leader in the tools and equipment rental, outsourcing and services sector. We believe there is enormous potential for the business to grow further and look forward to supporting the management team during what promises to be an exciting time for the business.”