Auckland, New Zealand-based Hirepool Limited acquired five more branches last week, effectively completing its national roll-out strategy more than six months ahead of schedule.
The purchase of Hire Services Limited, a network of five rental branches in Invercargill, Queenstown, Gore, Cromwell and Te Anau, brings Hirepool’s nationwide network of business units to 43.
The Hire Services deal, which takes effect on May 1, comes at a historic time for Hirepool, which is celebrating its 50th Anniversary with a gala dinner in Auckland tonight, attended by New Zealand Prime Minister Helen Clark.
Hirepool managing director Tenby Powell says the acquisition of the five southern businesses “involved months of planning and now gives us strong penetration into a region long dominated by a rival competitor. Of greater significance, it sees us complete our national growth strategy more than six months ahead of schedule.”
When Powell acquired a stake in Hirepool from Owens Group in July 2003 as part of a consortium led by Goldman Sachs JB Were, with Owens (now Mainfreight Limited) retaining a share, the business had 14 branches.
At that stage an aggressive growth strategy was implemented to establish Hirepool as New Zealand’s recognized rental equipment leader within two years. This was predicated around Hirepool gaining critical mass through the purchase of Ready Hire, a strong North island chain. When Hirequip outbid Hirepool for that business, the national roll-out was put back to December 2005.
Hirepool’s acquisitions and greenfield startups during the past 20 months has allowed it to expand its market share across the North Island and establish a major footprint into the South Island, where it now has 13 branches, compared with only one this time two years ago. It has also diversified its holdings with the additional purchases of the Port-a-loo businesses in Auckland, Wellington and Marlborough.
“Having now achieved the national coverage we set to accomplish, we can consolidate the business gains made, develop our branches at regional level and strengthen alliances with key suppliers to support our growing commercial and DIY markets,” said Powell.
