30.10.2006

Speedy takes LGH

Speedy Hire has announced this morning that it has acquired the entire share capital of Lifting Gear Hire Ltd also known as LGH, from the Parkinson family.

LGH rents out a full range of lifting tackle and equipment and provides a wide range of associated services including the repair, maintenance, testing and inspection of lifting equipment.

Speedy has paid £13.5 million for the shares comprising £7.6 million in cash, the assumption of around £3.4 million of debt and £2.5 million in the form of 242,954 shares in Speedy Hire.

Lifting Gear Hire has 309 employees and operates from 34 UK depots, with its head office in North West England where a further 26 staff are based.
Revenues for the 10 months to the end of April 2006 were £16.2 million with net assets as at year end of £2.3million.

The deal is expected to complete this week.

Steve Corcoran, Chief Executive said:
“Lifting Gear Hire has long been regarded as the leading brand providing lifting equipment hire, especially in the industrial services and manufacturing sectors. Its operations and customer base are highly complementary to Speedy Hire’s existing specialist lifting business.

“The combination of Speedy Hire’s hire expertise and Lifting Gear Hire’s technical reputation will produce an unrivalled ability to provide equipment and services to fulfil customer requirements across the broad spectrum of customer industries, product requirements and geographical locations”.

“I am pleased to welcome all employees of Lifting Gear Hire to Speedy Hire and I look forward to continued growth within the enlarged lifting business."

The deal does not include the LGH operations in the USA, Holland and Germany, nor the LGH Winches, Rigging Services (entertainment) and Suspended Access businesses.