Hire firm given green light to sell off subsidiary for £60.5m

Manchester based tool hire firm HSS Hire has been given the go ahead to sell a subsidiary business for £60.5m.

The Competition and Markets Authority (CMA) has given unconditional clearance for Leicestershire based Nationwide Platforms Limited, a wholly-owned subsidiary of the Loxam Group, to acquire UK Platforms Limited from HSS Hire.

Nationwide is part of Lavendon Group, also based in Lutterworth, which was itself bought by French rival Loxam early last year.

This transaction will allow HSS Hire, which has its head office in Old Trafford, to make significant progress towards reducing its debt and to focus on the core Tool Hire business.

HSS Hire said it now expects completion of the disposal in early 2019.

As part of the deal HSS Hire has entered into a long term strategic commercial agreement with Nationwide to provide powered access equipment to complement its existing fleet.

HSS Hire chief executive Steve Ashmore said: “Since our strategic review last December we have made substantial progress against our strategic priorities by reducing costs, delivering major operational change, improving trading and re-financing.

“It will accelerate progress against our strategic priorities, enabling further deleveraging through debt reduction and allow greater focus on our core tool hire business.

“The UK Platforms business has made an excellent contribution to the group over recent years, but considering our priorities and focus on tool hire we feel it will reach its full potential under new ownership.

“We will continue to provide our customers with all of their powered access needs through our existing fleet and the new strategic partnership with Nationwide.”