Speedy Hire buys OHP, strengthens rail sector services

Tools, equipment and plant hire services company Speedy Hire has acquired OHP Limited for an initial cash consideration of £1.5m and the assumption of net debt of around £1.7m.

The deal, which is expected to be earnings enhancing in the first year following acquisition, was funded from Speedy's existing cash and debt facilities.

A contingent cash consideration of up to a further £800,000 is payable, dependent on the future performance of the OHP Group, Speedy said.

The OHP Group primarily comprises Rail Hire Limited, which specialises in the hire of overheard in equipment. It also includes tools and equipment hire business Crewe Plant Hire.

Speedy Hire said the OHP’s founder and managing director, Martin Davies, will remain with the business after the acquisition.

OHP’s consolidated revenues for the year ended 30 November 2015 were around £2.6m, with normalised earnings before interest tax depreciation and amortisation of approximately £800,000.

Chief executive Russel Down said the acquisition will “help expand our business in this specialist sector of a growing UK rail market and further enhance our market position”.

The company also briefly updated the market, saying current trading was in line with its expectations as reported back in November.

At 0915 GMT, Speedy Hire shares were up 8.2% to 39.75p.