The two strategic acquisitions give the Group a stronger foothold in the Midlands and the South West.
Companies: Speedy Hire Plc
Speedy Hire (LON: SDY) has announced this morning its acquisitions of rival equipment and plant hire companies Prolift Access and Platform Sales & Hire in deals totalling £13m.
Shares in the Group are trading slightly up with news of the two strategic acquisitions which expand the Group's reach in the South West and Midlands.
Based in Somerset, Prolift Access reported £2.4m EBITDA from £7.9m last financial year and was acquired for £5.9m in cash. The Group, who specialise in cherry picker and scissor lift hire have approx. 770 hireable pieces of equipment.
Platform Sales & Hire is based in the Midlands and reported £2.4m EBITDA from £9.3m in its last financial year. It was acquired for £7.1m.
Commenting on the acquisitions, Russell Down, Chief Executive of Speedy, said:
"These acquisitions strengthen our powered access offering and allow us to better serve our customers through the core fleet."
The Group has undergone somewhat of a transformation after a rocky couple of years that saw a number of profit warnings as well as the swift departure of then Group CEO Mark Rogerson after just 18 months at the helm.
It reported its FY18 Interims last week with Revenues up 7% to £183m and Adjusted PBT growth of 59% to £10.8m, significantly beating broker forecasts.
SDY shares crashed off the back of a profit warning in 2015, falling from 76p to 33p. It has since regained some of the lost ground to currently trade at c. 57p and a forecast price to earnings multiple on par with the industry median of 14x.