Speedy Hire has signed a five year rental contract with Al Futtaim Carillion (AFC), the joint venture business between Carillion and Al Futtaim Group in the Middle East and North Africa. The deal could generate annual rental revenues of £10 million in its first year.
Speedy has acquired £4.1 million worth of light equipment and other assets from AFC and will become the contractor's exclusive rental supplier for light plant and equipment in the Middle East and North Africa. The deal follows on from a memorandum of understanding signed by the two companies last July.
The contract will initially cover a number of long-term AFC projects in the United Arab Emirates (UAE) but will eventually extend to other projects in the region.
The UK rental company, which has now invested a total of £8.5 million in equipment for the new venture, said it will also provide "a full range of asset management and logistical services" for AFC.
Steve Corcoran, Speedy's chief executive officer, said; "This underlines the long term value of our strategy of deepening our relationships with leading international contractors and industrial clients and highlights Speedy's rapid progress in becoming an international services business."
John McDonough, Carillion's CEO, said; "Building long-term relationships with our key suppliers is important to our ability to deliver increasingly efficient, high-quality services for our customers. We look forward to working with Speedy in the Middle East and to building on the strong relationship we have already developed with Speedy in the UK."
The formal completion of the contract is expected later this month when Speedy finalises the establishment of a local trading entity and obtains relevant trading licences.