Popular tool and plant hire firm, HSS Hire, has this week been given the all-clear to sell one of their subsidiary businesses.
According to sources, Leicestershire-based Nationwide Platforms, a subsidiary of the Loxam Group, is set to acquire UK Platforms from HSS Hire. While little details have been revealed, sources say the firm is to be sold for a healthy £60.5 million.
Relieving itself of the responsibilities owning UK Platforms entails, the rental firm will now look to streamline its operations. Having found themselves in quite a substantial debt, the brand can now focus on tool hire and tool hire only.
HSS chief executive Steve Ashmore said the following:
“Today’s announcement is another step forward.
“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” he continued.
The sale is expected to be completed this year, with HSS being free of the brand by the end of 2019.
However, this is not a straight sale. As part of the deal, HSS has decided to enter into a long term, strategic commercial agreement with Nationwide Platforms. They have agreed to provide powered access equipment to add to HSS’s forever-growing fleet.
Let us know what you think. Is this a good move for HSS Hire? Or, should HSS Hire be further diversifying their investment portfolio? Leave your thoughts and opinions with us in the comments below.