Coates Hire buys traffic equipment rental company

Melbourne-based Traffic Technologies Ltd (TTI) is to sell its traffic equipment rental business to Coates Hire for A$2.5 million (€1.92 million).

The business rents equipment such as portable message boards, temporary traffic lights and road barriers to contractors and road authorities. TTl is a manufacturer of traffic equipment and said the rental division was a "non-core" activity.

The traffic rental business generated revenue of A$1.8 million (€1.38 million) and an EBITDA profit of A$0.7 million (€0.54 million), before non- recurring items, in the financial year ended 30 June 2011.

The sale is expected to be completed by the end of December.

Last week, National Hire Group, which owns a 46.1% share of Coates Hire, was acquired by Kerry Stokes' Seven group. There is speculation that Seven will now try to either sell Coates or refloat it on the Australian stock market.