15.05.2006

Speedy Hire buys LCH

Speedy Hire has acquired LCH Generators Ltd, for £59.0 million, comprising £54.5 million in cash and £4.5 million from the issue of 512,626 new ordinary shares in Speedy. Included in the transaction price is £13.5m of debt that Speedy Hire will assume on completion.

LCH operates from six depots, the company supplies a large number of units to the Tower crane industry and is the sole supplier to this years SED show, which is entirely powered by Generators.

LCH was owned by the Pirrie family, John, James and Glynis, when combined with Speedy’s existing power generation business, the combined operation will have over 4,000 generators in its fleet.

LCH had revenues in 2005 of £21.1 million, a 50 percent rise on 2004, and pre-tax profits of £1.9 million. Gross assets are £30.6million.

To finance the transaction, Speedy Hire negotiated increased bank facilities of £210 million up from £150 million from its existing banking syndicate.