The United Kingdom’s largest tool and equipment rental company Speedy Hire has sold Speedy Space, its temporary accommodation division, for nearly £35 million (about U.S. $57 million) to Elliot Group, a subsidiary of U.S.-based Algeco Scotsman. The division had assets of £52.4 million.
Speedy officials said the transaction would allow it to focus on its core operations.
Operating losses at the division increased during the past two years from £2.1 million on sales of £40.6 million last year to £4.5 million on sales of £35.5 million in the recent fiscal year ended March 31.
Speedy said it experienced “challenging trading conditions” in the accommodation rental division because of downward price pressures.
The group said the net cash proceeds would be used to reduce its debt. As part of the transaction, Speedy will provide service and maintenance support to Elliott’s power generation assets for an initial three years.
Speedy Hire is based in Newton-le-Willows, Merseyside, U.K.