U.K. rental giant Speedy has signed a five-year strategic services agreement with Al Futtaim Carillion, Carillion plc’s long-running joint venture in the Middle East and North Africa with the Al-Futtaim Group. The formal agreement follows the signing of a “Memorandum of Understanding” between Speedy and AFC in July 2009.
Under the terms of the agreement, Speedy will, in addition to becoming AFC’s exclusive provider of equipment across the Middle East and North Africa, provide a full range of asset management and logistical services using its IT and business process platforms. Under a separate agreement signed with AFC, Speedy acquired certain assets from AFC for a cash consideration of £4.1 million, which, together with existing equipment transferred from the U.K. and investment in new equipment, takes Speedy’s overall investment to support AFC’s specific requirements to about £8.5 million.
Speedy will be supporting a number of long-term AFC projects in the United Arab Emirates and other projects in the region. Speedy plans to this month finalize the establishment of a local trading entity and obtain relevant local trading licenses.
Speedy’s International Asset Services Division is on track to bring in more than £10 million as of March 2010.
“We look forward to working with Speedy in the Middle East and to building on the strong relationship we have already developed with Speedy in the U.K.,” said John McDonough, Carillion CEO.
Speedy Hire is based in Newton-le-Willows, Merseyside, U.K.