10.07.2006

New Zealand’s Hirepool sold

A private equity fund, Next Capital, has purchased 75 percent of the equity in Hirepool, the long established New Zealand rental company.

The company now operates from 52 locations and includes powered access, scaffold and telehandlers in its fleet.

The business has been up for sale since Goldman Sachs, which has owned 51 percent of the business since 2003 announced that it wished to sell its stake. The deal is said to be worth $110 million.

The business had been part of the Tauranga transport company, Owens Group, but was put up for sale after Owens was taken over by Mainfreight. The Hirepool business was acquired for $43.5million by Goldman Sachs- JB Were's Hauraki No1 fund (51%) and entrepreneurs Sharon Hunter and Tenby Powell (24.5%). Mainfreight retained the remaining 24.5 percent.

The Powell’s will retain most of their stake in the business, which has more than doubled in size since they bought in.

Coates of Australia and Hirequip were rumoured to be in the bidding as was the prospect of an IPO, in the end the private sale to another venture fund proved the more attractive.