The receivers of New Zealand equipment rental company HireQuip have begun negotiations to sell the company to Hirepool, which is 75-percent owned by Australian private equity firm Next Capital, according to online news reports from New Zealand. The future of HireQuip’s 320 employees is believed to be a major issue in the negotiations. Regulatory approval from New Zealand’s Commerce Commission is also required.
HireQuip has 37 branches in New Zealand. Hirepool has 52 locations as well as branches in Australia known as Onsite Rental Group. HireQuip’s primary customer base is large construction and civil infrastructure companies and the company specializes in larger earthmoving equipment. Hirepool primarily caters to small- and medium-sized contractors.
HireQuip owes close to $120 million to Westpac Banking Corp., its largest creditor, the reports indicated. Hirepool is believed to have close to a 25-percent equipment rental market share in New Zealand, with HireQuip about 20 percent.