Tool hire group up for sale

Tool rental group Vp is up for sale after its controlling shareholder Ackers P Investment Company said it wanted to dispose of its entire shareholding.

The decision by the company which is connected to Vp’s chairman Jeremy Pilkington and controls circa 50.26% of Vp group has led to the board c launching a formal sale process, which could net the shareholder c £180m.

Jeremy Pilkington, chairman of Vp

Pilkington said that the decision by the company connected to him does “not in any way reflect a dissatisfaction with the company or its direction” and that they were satisfied by the group’s strong performance, but added Ackers P Investment Company has to “take into account their current and future obligations to my family as a whole”.

Vp reported its half year results in November with revenues almost back to pre-pandemic levels having previously noted that the pandemic had “brought out the out the very best in the business”.

Earlier this month the group which acquired M&S Hire for £2.8m late in 2021 noted that it was optimistic about its prospects, thanks to its core markets of infrastructure, construction and housebuilding generating increasing demand.

The board has said that its is looking for a buyer for the business “who will respect Vp’s unique heritage, family culture and committed employee base” as well as support the company’s environmental and sustainability goals in order to ensure the business can “continue to prosper in the long term”.

Neil Stothard, CEO, Vp Group

Neil Stothard, chief executive of Vp, added: “Following the indication from the controlling shareholder that they would like to explore opportunities to dispose of their shares, the Board thoroughly considered all strategic options in partnership with our advisers. In considering these options the Board, including Jeremy, has had regard to the interests of all the company’s stakeholders [and] has unanimously concluded that it would be appropriate to investigate the sale of the company.”

The Board intends to seek a buyer who will respect our unique heritage and highly valued employee base, whilst supporting our longer-term growth ambitions and ensuring we continue to develop our business and maintain an environment whereby the business can continue to deliver long term, quality returns, to our shareholders.”

The news could see the business which was founded in 1954 and floated in 1973, become the latest business to go private as the trend continues following the sale of Morrisons, Asda and St Modwen last year.

Rothschild & Co is acting as financial adviser to Vp in relation to the sale process.

This morning’s news saw VP’s share price jump 13% to 922.40p per share but still remains below its 2021 peak of 24 September when it hit 1002p per share

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