Speedy Hire PLC has pleased announced that it has acquired the entire issued share capital of OHP Limited (“the OHP Group”) for an initial cash consideration of £1.5 million, along with the assumption of net debt of £1.7 million. Contingent cash consideration of up to a further £0.8 million is payable, dependent on the future performance of the OHP Group.
The OHP Group employs 25 staff and primarily comprises Rail Hire (UK) Limited, a company that specialises in the hire of overhead line equipment (“OLE”) to the rail sector. The OHP Group also includes Crewe Plant Hire Limited, a tools and equipment hire business operating from premises in Crewe. The OHP Group’s founder and Managing Director, Martin Davies, will remain with the business post-acquisition.
Consolidated revenues for the year ended 30 November 2015 were approximately £2.6 million, with normalised earnings before interest tax depreciation and amortisation of approximately £0.8 million. Rail Hire (UK) Limited has recently secured new contracts in the expanding OLE market and consequently revenues are expected to grow through the Company’s next financial year. The acquisition, which is expected to be earnings enhancing in the first year following acquisition was funded from Speedy’s existing cash and debt facilities(1).
The Board confirms that current trading is in line with its expectations as reported on 10 November 2015(1).
Russell Down, Chief Executive of Speedy, commented:
“I am delighted to announce this acquisition which will help expand our business in this specialist sector of a growing UK rail market and further enhance our market position.”