Plant hire group unveils acquisition with potential value of £26m
Speedy Hire, the Newton-le-Willows-based plant hire group, has announced the takeover of a Scottish training group today, which could reach £26m in value, depending on performance.
The group confirmed that it has acquired the entire issued share capital of training provider Geason Holdings from Ian and Robert Kilpatrick, and connected family trust companies.
Geason is a leading provider of construction and professional services training across the UK, operating from a head office in Glasgow, with more than 1,100 apprentices and 500 NVQ learners currently on programmes.
Its unaudited accounts for the 12 months to October 31, reported revenue of £8.3m, EBITA of £1.7m and gross assets of £2.6m.
Speedy said cash consideration paid on completion amounted to £9m with net cash assumed of £300,000.
A contingent consideration of up to £26m may be payable in cash based on a multiple of 3.25x EBITA, dependent on the combined performance of Geason and Speedy’s training business in the three years post acquisition.
The acquisition will allow Speedy Hire to better support its customers in training and developing their staff and accelerate the growth of Speedy’s services businesses.
Commenting on the acquisition, Russell Down, Speedy chief executive, said: “This acquisition expands our training services offering and allows us to deliver flexible, progressive training programmes to support customers across the UK.
“I warmly welcome Ian, Robert and Geason employees to Speedy.”
Last month Speedy issued interim results which showed a 6.5% increase in revenues, excluding disposals, of £192.8m, while pre-tax profits revealed a healthy 120% improvement, at £13.2m.
Adjusted profit before tax was up by 24.1% to £13.4m, compared with £10.8m the previous year.
The Manchester office of Addleshaw Goddard advised Speedy Hire on its acquisition of Geason.
The large AG team included partner Roger Hart and associates Rabia Burton, Gemma Porter, Gaz Coosar, Alexandra Robinson and Emma Atkinson.
