ASHTEAD GROUP PLC
US COURT OF APPEAL DISMISSES HEAD & ENGQUIST APPEAL, UPHOLDS ORIGINAL JUDGEMENT
IN FAVOUR OF SUNBELT
Ashtead Group PLC ('Ashtead'), the international equipment rental group serving
the construction, industrial and homeowner markets, announces that the North
Carolina Court of Appeals has dismissed an appeal by Head & Engquist Equipment
LLC ('H&E') against an earlier ruling in which Ashtead's US subsidiary, Sunbelt
Rentals Inc. ('Sunbelt'), was awarded damages of $15m plus recovery of its
legal costs and pre and post judgement interest. The award is currently secured
by a letter of credit in the amount of $20.1 million lodged by H&E with the
Court. H&E has the right to challenge the judgement of the Court of Appeal on
or before 22 November 2005.
The events subject to litigation date back to 2000, in the period immediately
prior to Sunbelt's acquisition of BET USA, when H&E executed a plan to develop
its aerial work platform rental business by raiding over 100 staff from the BPS
division of BET USA, to open competing rental stores in seven major markets
served by BPS.
The $20 million award has not been reflected in Ashtead's accounts but all
Sunbelt's litigation costs have been expensed.
Contacts:
Ashtead
Cob Stenham Non-executive Chairman 020 7299 5562
George Burnett Chief Executive )
Ian Robson Finance Director ) 01372 362300
Maitland
Brian Hudspith 020 7379 5151
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