Ashtead buys Hewden assets for £29m as Manchester-based firm goes into administration

Ashtead has bought some of fellow equipment rental company Hewden’s assets and the brand name from its administrators, EY, for £29m.

The assets – which were purchased by Ashtead’s UK business, A-Plant – include Hewden’s powered access and power generation fleet, five ‘on site’ depots which service major petrochemical customers, the Interlift lifting and materials handling business and the Hewden brand name.

Ashtead said that as part of the deal, a number of Hewden’s employees will be joining the A-Plant business.

A-Plant’s chief executive Sat Dhaiwal said: “This acquisition significantly enhances A-Plant's offering in the industrial sector where we have been keen to develop our capabilities for some time. We are pleased to be taking over a number of important on-site depots at major petrochemical facilities and will ensure that a high level of service is maintained for all customers through the integration process.”

EY said on Tuesday that it has been appointed as administrators to Hewden following recent press reports that the company was on the brink of collapse.

Joint administrator Sam Woodward said: “Management has been attempting to operationally reshape the business to focus on higher margin and quicker returning assets and services.

“However, this has proven challenging with the group’s capital structure and the recent trading environment. Management recently undertook a number of initiatives including approaching new funders and potential acquirers to recapitalise the business, but unfortunately these efforts proved unsuccessful.”

Woodward said EY was now “assessing the optimum strategy for maximising value in the remainder of the group” following the sale of three divisions to Ashtead.

“In the meantime, we will continue to work with stakeholders to maintain service levels to customers who have assets on hire.”

EY said a total of 251 employees were made redundant across the company’s depot and on-site locations.

Hewden had said in a statement back in October that the group was hit by market uncertainty following the UK’s vote to leave European Union.

“The vote has adversely affected a number of large construction and capital investment projects,” it said at the time.

At 1222 GMT, Ashtead shares were up 2.4% to 1,454.17p.