Hire giant snaps up Cheshire rail specialist
The Newton-le-Willows-based company has paid £1.5m for Crewe-based OHP Group and also assumed £1.7m of net debt. The listed company will pay the vendors a further £800,000 if future performance targets are met.
The OHP Group employs 25 staff and primarily comprises Rail Hire (UK) Limited, a company specialising in the hire of overhead line equipment to the rail sector. The OHP Group also includes Crewe Plant Hire Limited, a tools and equipment hire business operating from premises in Crewe. Founder and managing director, Martin Davies, will remain with the business post-acquisition.
Consolidated revenues for the year to November 30 2015 were approximately £2.6 million, with normalised earnings before interest tax depreciation and amortisation of approximately £0.8m.
Rail Hire (UK) has recently secured new contracts in the expanding overhead line equipment market and consequently revenues are expected to grow through the next financial year. The acquisition, which is expected to be earnings enhancing in the first year following acquisition was funded from Speedy’s existing cash and debt facilities.
Russell Down, chief executive of Speedy said: “I am delighted to announce this acquisition which will help expand our business in this specialist sector of a growing UK rail market and further enhance our market position.”
FRP Advisory in Manchester marketed OHP, resulting in competing bids over the last two months. Adrian Gare and Ben Woolrych led the team from FRP who were financial advisers for OHP on its sale.
