Vibroplant PLC
1 June 2000
Vibroplant Plc ('Vibroplant' or the 'Company')
Acquisition of The Handi Hire Group Ltd ('Handi Hire')
The Directors of Vibroplant announce the acquisition of the entire issued
share capital of Handi Hire for a consideration of £2.58 million, to be
satisfied by a combination of cash and loan notes. Vibroplant will also
assume the net debt of Handi Hire, which amounted to £2.08 million as at 31
December 1999. Handi Hire's turnover in the year to 31 December 1999 was
£6.41 million. It is expected that the net assets of the company at
completion will be approximately £210,000.
Handi Hire reported a pre-tax loss of £253,000 for the year ended 31 December
1999. This loss is after vendors remuneration and benefits. Management
believe that, over a period of time, margins similar to those achieved by
Vibroplant's existing tool hire businesses should be achievable.
The principal activities of Handi Hire are the hire and sale of tools and
related equipment to industry, construction and homeowners from 24 depots
throughout the East Midlands and South Yorkshire. Handi Hire significantly
expands Vibroplant's current network of 50 tool hire branches, providing an
excellent geographical fit and substantially advancing the strategic objective
of providing full national coverage in this sector. As part of that strategy,
Vibroplant recently established a national tool hire call centre, The Hire
Station (October 1999) and launched Tools and Fixings Direct, its direct
sales, catalogue and 'e' commerce tool business (toolfixdirect.co.uk) in May
2000.
This acquisition is in line with the refocusing of the Group on its specialist
rental activities and follows the sale of its powered access assets to
Lavendon Plc for £3.76 million in April 2000.
Enquiries :
Jeremy Pilkington, Chairman and Chief Executive
Neil Stothard, Group Finance Director
Vibroplant Plc
Telephone : 01423 533400
Peter Otero
Financial Dynamics
Telephone : 020 7831 3113
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