13.05.2013

Ashtead acquires Eve

UK/USA rental company Ashtead has acquired the Accession Group, whose main trading business is Eve Trakway, the provider of temporary roadways and fencing etc…

The deal is valued at £28 million in cash with a further £7 million in cash depending on the profitability of the acquired business over the next 12 months. In the year to 31st March 2012, Accession reported revenues of £26 million.

Ashtead chief executive Geoff Drabble said: "We are delighted to conclude this acquisition in line with our long term strategy of developing high value added speciality businesses which broaden our product offering and the markets we serve. It also provides us with cross-selling opportunities to further improve our existing business."
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Chief executive Sat Dhaiwal added: “A-Plant already hires equipment into the UK events market, we supplied a great deal of equipment during the London Olympics & Paralympics, but for certain types of equipment we had to supply on a re-hire basis. Having Eve under the A-Plant umbrella gives us the opportunity to supply a more complete package to the events industry, as well as opening up Eve’s customer base to a wider range of equipment”.

Vertikal Comment

This looks like a very good move for Ashtead in that Eve Trakway was the originator of the aluminium temporary road system and has a brand name and that is far stronger than its revenues suggest.

Given its market coverage and customer base Ashtead could be looking at a very rapid pay back on this investment.