Speedy Hire, the tools, equipment and plant hire services company, is pleased to announce that it has acquired the entire issued share capital of OHP (the OHP Group).
There is an initial cash consideration of £1.5m, along with the assumption of net debt of around £1.7m. Contingent cash consideration of up to a further £0.8m is payable, dependent on the future performance of the OHP Group.
The OHP Group employs 25 members of staff and primarily comprises Rail Hire (UK), a company specialising in the hire of overhead line equipment (“OLE”) to the rail sector. The OHP Group also includes Crewe Plant Hire, 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 £2.6m, with normalised earnings before interest tax depreciation and amortisation of approximately £0.8m. Rail Hire (UK) 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.