An investigation into Vp plc’s proposed acquisition of Brandon Hire is underway by the Competition & Markets Authority (CMA), Vp has announced.
The deal was agreed on 8 November for a purchase price of £41.6 million (€47.12 million), and Vp said it conducted a detailed due diligence exercise, including assessing potential competition considerations, before the acquisition was announced.
The company added it would fully assist the CMA with its enquiry.
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).