07.04.2017

Vp acquires JMS M&E

UK rental group Vp has acquired the assets and business activities of the mechanical & electrical equipment sales and rental activity of Jackson Mechanical Services (UK) Ltd - JMS M&E -for £3.6 million in cash. This transaction does not include the JMS Plant Hire - Powered Access Division which includes a substantial low level fleet.

JMS M&E operates from the JMS Plant Hire locations in Harpenden and Leeds. Vp will move the M&E operations to its own locations as it integrates the acquired business into its Hire Station tool and small equipment rental operation, which also includes safety equipment, low level access and press fitting equipment.

JMS Powered Access operates a substantial fleet of low level access, spider lifts, boom lifts and scissors, and will continue to offer telehandlers, mini -excavators, and dumpers etc… from its Harpenden headquarters, new depot in Leeds and office at Pinewood Studios.

Vp chairman Jeremy Pilkington said: "We are very pleased to welcome the JMS M&E team to the Vp group. This acquisition will provide additional strength to our successful Hire Station specialist businesses."

JMS operations director Mike Howells added: “We would like to thank our staff and customers of our M&E division for their support and business over the years”.

Managing director Mark Jackson said: “We are excited for the future of JMS Powered Access. The division has grown rapidly in recent years and we are looking forward to offering our customers an even better service and expanded product range with the same great team”.

Vp, which is publicly traded, also issued a trading update which said: “Since the interim results announcement on 29 November 2016, Vp has experienced positive trading conditions through the winter period and continues to make good progress. The board anticipates that the group will deliver full year results in line with current market expectations for the year ended 31 March 2017.”

Vertikal Comment

This looks like a good move for both parties, it looks like a relative bargain for Vp and substantially boosts the Hire Station fleet in this area, while providing JMS with a cash boost, while freeing it to focus on its growing aerial lift business. It is the sort of Deal that Vp loves, and should be relatively easy to incorporate into its existing operations.