U.K.’s Speedy Hire Acquires Battery Storage Unit Rental Specialist Green Power Hire
Speedy Hire Plc, the U.K. and Ireland's leading provider of tools, specialist equipment and services, has acquired the entire issued share capital of sustainable power solutions specialist, Green Power Hire Limited for an enterprise value of £20.2 million (about U.S. $24.5 million). The total consideration, which was funded from the company's existing debt facilities, represented £10 million of equity value and assumed debt of £10.2 million, which was settled at completion. Speedy acquired GPH from its principal shareholder, Russell's (Kirbymoorside) Limited, and four other shareholders.
GPH is a recognized industry-leading owner and supplier of battery storage units to the U.K. rental market, mainly to the construction sector. GPH's battery storage units (BSU) enable customers to achieve both financial and environmental savings compared to alternative systems available.
Speedy continues to experience strong demand from its current and potential new customers for eco products and sustainable power solutions, the company said, and an increasing number of customers specify battery storage units. The acquisition positions Speedy as a market leader in a key growth segment, providing it with the critical mass to meet demand from its customers and enabling it to retain more of the margin from directly renting to its customers. To date GPH's BSU assets have been provided by Speedy to its end customers on a re-hire basis as part of Speedy's Customer Solutions division.
The acquisition of GPH will enable the continuing rapid development of GPH's business, with access to Speedy's broad customer base, asset rental expertise, data and AI capabilities and investment in expanding the number of BSUs. GPH will also benefit from operational and scale efficiencies as part of the Speedy Group. Mark Chamberlain, director and one of the vendor shareholders of GPH, joined Speedy at completion of the transaction, as an integral part of the ongoing management team.
The acquisition is expected to be accretive to underlying earnings in the first full year of ownership, with return on invested capital exceeding the group's cost of capital.
"The acquisition of Green Power Hire is further evidence of our 'Velocity' strategy in action, strengthening our market leadership in combining product innovation and sustainability, and positioning Speedy well in a high growth segment of the market,” said Speedy Hire chief executive Dan Evans. "Alongside investments such as our partnership with Niftylift and our proposed joint venture with AFC Energy, the acquisition progresses the sustainable and technological evolution of the sectors we operate in, supports our ambitious plan to become a net zero business by 2040 and will deliver long term benefits to our customers, our people and our investors."
