UK-based rental company Vp plc has announced it is to acquire Brandon Hire Group in a deal worth £41.6 million (€47.12 million).
The deal was agreed between Vp and Brandon’s parent company Wolseley Group, which bought Brandon in 2006. Vp will also take on Brandon’s net debt of £27.2 million (€30.81 million).
Brandon was established in 1971 and is a tool and equipment hire company with over 900 employees, operating from a network of 143 locations across the UK.
Vp said that Brandon’s operational model was similar to its own tool hire business, Hire Station. It added that the combination of the two businesses would, over the medium term, deliver economies of scale in purchasing and operations and would create a leading specialist tool hire business within the UK division of Vp.
In 2016, Brandon recorded revenues of £79.8 million (€90.39 million) and an operating profit of £6 million (€6.80 million).
Commenting on the acquisition of Brandon Hire, Jeremy Pilkington, chairman of Vp plc, said, “The acquisition of a well-established business of the size and quality of Brandon Hire is a significant development for Vp.
“We have, over recent years, developed an industry leading specialist tool hire business in the UK. This transaction represents a major step change in the scale and scope of our specialist tool hire offering.”
Meanwhile, Neil Stothard, CEO of Vp plc, said, “Brandon Hire is a long established, well managed profitable business which is an extremely positive addition to the Vp group.
“With an extensive branch network, Brandon Hire is an excellent geographic fit with our current specialist tool hire operations and we expect this acquisition to be earnings enhancing to the group in the first twelve months of ownership.”