Agreement and Acquisition

RNS Number : 3584V

Speedy Hire PLC

28 May 2008

 



28 May 2008

Speedy Hire Plc

('Speedy')

Strategic Partnering Agreement and Acquisition of Carillion Asset Management Limited's Accommodation Business

Speedy Hire is pleased to announce that it has strengthened its relationship with Carillion plc by entering into a new five year Strategic Partnering Agreement. This agreement reinforces Speedy's position as Carillion's preferred supplier of its full range of products and services and extends across all Carillion group companies, including the recently acquired Alfred McAlpine business.

As part of the Agreement, Speedy has acquired the accommodation business of Carillion Asset Management Limited ('CAM').  CAM hires and sells portable and modular accommodation, servicing both the Carillion group's internal accommodation requirements and those of a number of external customers. The aggregate cash consideration is £11.0 million together with the assumption by Speedy of £1.5 million of liabilities under certain operating and finance leases. Working capital and cash are not being acquired with the assets.

CAM's accommodation business operates from three UK depots and has 23 employees, all of whom will transfer to Speedy as part of the transaction. CAM will be integrated within Speedy's Accommodation Division, which specialises in the hire of accommodation and storage units.

Steve Corcoran, Chief Executive said:

'We are very pleased to strengthen further our long-standing relationship with Carillion. The entering into of a long-term Strategic Partnering Agreement will enable both companies to maximise supply chain opportunities following Carillion's recent acquisition of Alfred McAlpine.

I would also like to extend a warm welcome to those employees of Carillion's accommodation business who will be joining Speedy.'

Chris Dyson, Carillion Building Procurement Director, said:

'Carillion is delighted to have strengthened its relationship with Speedy Hire through a new five-year agreement. Speedy Hire is one of our key suppliers and this agreement will bring significant benefits to Carillion as we continue to develop and grow our business.'  

For further information:

Speedy Hire Plc	Hudson Sandler
Steve Corcoran, Chief Executive	Nick Lyon / Wendy Baker/Kate Hough
Tel: [phone]	Tel: [phone]

www.speedyhireplc.co.uk

  Notes to editors:

Speedy Hire Plc

Speedy is the UK's No.1 provider of tools and equipment for hire.  The Company operates from c. 500 depots throughout the UK. Speedy Hire also operates in the Republic of Ireland.

The Company's activities are the provision for hire of tools, portable accommodation, compressed air, pumps, lifting, material handling, survey and measurement instrumentation and power generation equipment.

 

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