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LONDON - Speedy Hire plc, the UK’s leading tools and equipment hire services company, announced Monday it has entered into a commercial agreement with HSS ProService Limited and will acquire a 9.99% stake in ProService Building Services Marketplace plc for a total of £35 million.
Under the agreement, Speedy’s subsidiary Speedy Asset Services will have first refusal rights to supply ProService with core hire equipment, estimated to generate £50-55 million in annual revenue. The deal includes Speedy acquiring HSS core equipment currently on hire to ProService customers and taking over three HSS service centers through lease assignments.
The five-year agreement, which Speedy can unilaterally extend to eight years, is expected to significantly boost the company’s earnings and operating margin in the first full financial year. Speedy anticipates recovering the full consideration from operating cash flow within two to three years, excluding potential returns from its equity stake.
"This is a transformational agreement for Speedy, made possible by the progress of the Group under our Velocity growth strategy," said Dan Evans, CEO of Speedy. The company plans to offer positions to approximately 300 HSS employees following a formal consultation process.
Speedy will fund the transaction from existing resources, with the company expecting to temporarily exceed its target leverage range with net debt to EBITDA reaching approximately 2.1x by March 2026. To support deleveraging, Speedy plans to reduce its dividend to 1.00 pence per share for FY2026, with at least 5% annual growth for FY2027 and FY2028 before returning to historical levels.
The transaction, which is subject to customary closing conditions, is expected to complete by December 31, 2025. Speedy reaffirmed its five-year financial targets announced in July 2023, including revenues of approximately £650 million and EBITDA margins of around 28%.
The information is based on a press release statement from Speedy Hire plc.
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