SNC hoovers up Hercules Site Services’s suction excavator division
Hercules Site Services has sold its suction excavator division to a Merseyside company as part of its strategy to focus on its core labour supply business.
SNC Holdings (NW), based in Newton-le-Willows, has paid £2.4m to acquire the business. The wider SNC group’s services include logistics and vacuum excavation systems.
The Suction Excavator business accounted for 88% of Hercules’ borrowings but less than 5% of its revenue. The sale will “materially reduce” the company’s debt and lease liabilities by approximately £9m immediately.
The £6m-turnover division made a pre-tax loss of £0.4m last year.
Hercules chief executive Brusk Korkmaz believes it is “a hugely positive development” for the company.
He said: “As the UK carries out substantial construction and infrastructure upgrades within the nuclear, power and energy distribution, aviation, water, and rail sectors, our core Labour Supply business will now have greater resources to execute our strategy in these high-growth areas.
“This disposal gives the company a clearer identity and we are laser-focused on growth in our core sectors and strengthening our balance sheet. We expect our earnings per share and profit before tax to be enhanced for the benefit of shareholders.”
Cash from the sale and associated debt reduction will support the company’s ongoing acquisition strategy, Hercules told shareholders.
A team at Transcend Corporate, led by Steve Bartlett, was appointed by Hercules to support the deal. Transcend marketed the business to a targeted audience of potential buyers, subsequently managing negotiations and securing a positive outcome for both parties.
Bartlett, partner at Transcend, said: “We identified SNC as a strategic buyer for the Hercules suction excavator business. I am delighted to have been able to advise Hercules and to bring this deal to a successful conclusion. SNC are a great buyer for this business and this deal will enable them to consolidate their market leading position and continue with their impressive growth.”
Legal advice to Hercules Site Services was provided by Hill Dickinson (Jonathan Morris, Danielle Higgins).
