Speedy Hire acquires Green Power Hire in £20m sustainable power deal
In a strategic move to cement its dominance in the UK and Ireland’s tools, specialist equipment, and services sector, Speedy Hire Plc has announced the acquisition of sustainable power solutions trailblazer, Green Power Hire Limited (GPH). The acquisition, which comes at an enterprise value of £20.2m, encompasses £10m of equity value and assumed debt of £10.2m, which has been settled at completion. Speedy Hire’s acquisition of Green Power Hire is a direct purchase from its main shareholder, Russell’s (Kirbymoorside) Limited, and four other shareholders.
Green Power Hire stands out as a top-tier supplier of Battery Storage Units (BSUs) to the UK rental market, predominantly catering to the construction sector. Its BSUs, renowned for their cutting-edge digital capabilities, empower clients to realize both financial and environmental advantages against other available systems.
In response to the surging customer demand for eco-friendly products and sustainable power solutions, Speedy Hire’s acquisition propels the group into a market-leading position in this vital growth sector. This move allows Speedy to directly hire to its customers, thereby retaining a larger share of the margin. Historically, Green Power Hire’s BSU assets have been provisioned by Speedy to its end-users under a re-hire model via Speedy Hire’s Customer Solutions division.
This acquisition spells rapid growth for Green Power Hire, given its access to Speedy Hire’s vast customer network, advanced data, AI capabilities, and expertise in asset rental. Green Power Hire stands to gain from operational scale and efficiency under the Speedy Group umbrella. Mark Chamberlain, a former Green Power Hire shareholder, has transitioned to Speedy Hire’s management team post-acquisition.
The move is anticipated to bolster underlying earnings in its inaugural year of ownership, with the Return on Capital Employed (ROCE) surpassing the Group’s cost of capital. For context, as of July 2023, the assets under this transaction shifted from Russell’s (Kirbymoorside) Limited to Green Power Hire. The recent growth spurt of Green Power Hire saw its unaudited revenues hitting £5.9m for the ten months concluding in August 2023, marking the business’s profitability with unaudited gross assets standing at £12.5m.
Dan Evans, Speedy Hire Chief Executive, enthused about the acquisition, emphasizing its alignment with the company’s Velocity strategy. He added, “This move advances the sustainable and technological evolution in our sectors, supporting our ambitious net-zero by 2040 goal, ultimately benefiting our customers, team, and investors.”