06.10.2025

All digital for HSS

UK based HSS Hire has sold its physical rental operations, including around 130 depots, to private equity firm Endless for a nominal sum of £1 and will also pay it £26 million to cover restructuring costs. It has also agreed to sell some of its assets to Speedy Hire.

In the future HSS will focus on its ProService digital marketplace subsidiary, which is expected to generate revenues in the region of £50 to £55 million this year. Around 100 HSS employees will remain with HSS to run the ProService business

The news came out this morning after the company finally reported its results with a £130 million loss, most of it due to £114 million write off/write down on revenues of £379 million for the extended 15 month period, compared to £312 million for 12 months last year. On a like for like basis revenues fell five percent to £298 million.

In separate deal HSS has agreed to sell a 9.99 percent stake in ProService to Speedy Hire, which will also acquire a number of HSS depots, along with around 300 HSS employees associated with those locations. Speedy is paying a total of £35 million for the deal and will also become the primary supplier of rental equipment and testing services to ProService in a five year supply deal, with a three year extension clause.

Completion is expected by year end, subject of course, to shareholder and regulatory approvals.

HSS non executive chairman Alan Peterson said: “HSS delivered strong strategic progress during the period in reshaping the group by successfully separating ProService from the hire services business, despite having to bear the considerable burden of increased taxation, our two businesses are well now placed to focus on their respective strategic priorities.”

HSS executive chairman Steve Ashmore added: “This transformational agreement with Speedy Hire marks a major milestone in scaling our marketplace business. It allows us to focus solely on our asset light model, unlocking significant value for shareholders and customers. With increased scale and breadth, the business is now well positioned for profitable growth.”

Speedy chief executive Dan Evans said: “This is a transformational agreement for Speedy. It will provide customers with greater choice and an enhanced service, while giving Speedy a material opportunity for growth in the medium and longer term.”

Vertikal Comment

This is an interesting one, and it could be argued that the deal puts HSS out of its misery, having struggled over the past decade or so. Selling out to a private equity firm will probably be much appreciated by its competitors.

For Speedy, this looks like a no brainer, and certainly less risky than the proposed merger in 2015. In the deal it takes over a few - one assumes handpicked - depots to fill in any gaps in its network, while making a small bet on the HSS ProService digital business, as well as gaining a nice supply agreement - what's not to like?

Interesting times.