Speedy has sold its large plant fleet to Ardent Hire Solutions for £14.4 million in cash. The sale includes excavators, dumpers and ride-on rollers with operating weights of 3 tonnes and above.
The company said the disposal was in line with its strategy to focus on “core operations”. As part of the disposal Speedy has signed a five-year re-hire agreement with Ardent covering large earthmoving equipment.
Ardent was created by the merger last year of Fork Rent and One Call Hire, a deal that was engineered by former Speedy CEO Steve Corcoran. Mr Corcoran was CEO of Ardent until May this year when he stepped down from the role, but remains a “special advisor” to the company.
Speedy said the sold machines had a gross book value of £15.5 million and generated revenues of £3.2 million in the year to the end of July. The transaction will be completed on 9 September 2016 for assets held in England and Wales and on 30 November 2016 in Scotland.
Russell Down, Chief Executive of Speedy, said; “I am pleased that we have been able to conclude this agreement which both guarantees continuity of supply to our customers and will enhance our return on capital. The disposal is consistent with our strategy of focusing on core operations and further strengthening the Group's balance sheet.”