REG - HSS Hire Group PLC Grafton Group PLC - Sale of HSS Hire Ireland Limited

HSS HireAnnouncement

02/04/2025 07:04

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RNS Number : 2418D  HSS Hire Group PLC  02 April 2025

 

2 April 2025

 

HSS Hire Group plc

Sale of HSS Hire Ireland Limited

 

HSS Hire Group plc ("HSS" or the "Company") announces that Grafton Group plc
has agreed to acquire the entire issued share capital of HSS Hire Ireland
Limited ("HSS Hire Ireland") for a total gross consideration¹ of c.€31.6m
(c.£26.2m), representing a transaction multiple of c.6.9x multiple of
EBITA². The Disposal is subject to competition clearance in Ireland.

 

HSS Hire Ireland forms part of the Company's Operations division and
specialises in tool and equipment hire across the Republic of Ireland. The
Disposal follows the formal separation of the Company's ProService and
Operations business, now called The Hire Service Company ("THSC"), in
September 2024 to better unlock the value in each business and provide the
Board with additional optionality to maximise future value for shareholders.
The Disposal will allow the Company to continue to focus on driving the
long-term performance of these two standalone businesses, with the proceeds of
the Disposal used to strengthen its balance sheet.

 

Following the Disposal, THSC will comprise the Company's tool and equipment
hire and related services in the UK, which provides a one-stop shop for all
equipment through a combination of its complementary rental and re-hire
business to a diverse, predominantly B2B customer base serving a range of end
markets. For the year ended 28 December 2024, HSS Hire Ireland had unaudited
revenues of €31.9m (£27.0m) and unaudited EBITA of €4.6m (£3.9m). As at
28 December 2024, HSS Hire Ireland had net assets of €17.8m (£14.8m).

 

Steve Ashmore, Executive Chair, HSS ProService and Director, HSS Hire Group
plc said:

"This transaction realises an attractive valuation for our shareholders and is
a reflection of our continued strategic progress towards creating a more
focused business with two distinct divisions well positioned to deliver
enhanced returns when UK construction improves.

 

"I would like to thank Michael Killeen, CEO of HSS Hire Ireland, and his team
for their dedication over many years. We are delighted that as new owners
Grafton Group plc will continue to support the growth of the business and wish
them every success."

 

¹ Gross consideration is stated after adding back IFRS16 liabilities and is
subject to customary adjustments which will be set out in completion accounts
with net cash proceeds based on gross consideration adjusted for cash, debt
and debt-like items including IFRS16 liabilities

² Unaudited underlying EBITA for the year ended 28 December 2024

 

A further announcement will be made following finalisation of the completion
accounts.

 

-Ends-

 

For further information, please contact:

 

 HSS Hire Group plc                                    Email: Investors@hss.com
 Steve Ashmore, Chief Executive Officer
 Richard Jones, Interim Group Chief Financial Officer

 FTI Consulting                                        Tel: 020 3727 1340

 Nick Hasell

 Victoria Hayns

 Numis Securities (Nominated Adviser and Broker)       Tel: 020 7260 1000
 Stuart Skinner

 George Price

 

Inside Information: this announcement contains inside information for the
purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms
part of domestic law by virtue of the European Union (Withdrawal) Act 2018.
Upon the publication of this announcement via Regulatory Information Service,
this inside information is now considered to be in the public domain.

 

The person responsible for arranging its release on behalf of HSS Hire Group
plc is Daniel Joll, Company Secretary.

 

Notes to editors

 

HSS Hire Group plc operates through two separate but complementary businesses
serving predominantly business customers:

 

·       HSS ProService ("Pro") is the leading Digital marketplace
business focussed on customer and supplier acquisition. Technology driven,
scalable and uniquely differentiated. Wide range of building services,
including hire, resale, materials, training and more

 

·       The Hire Services Company ("THSC") formerly known as HSS
Operations, provides tool and equipment hire and related services in the UK
through a nationwide network of Group companies and third-party suppliers. It
offers a one-stop shop for all equipment through a combination of its
complementary rental and re-hire business to a diverse, predominantly B2B
customer base serving a range of end markets and activities.

 

·       HSS is listed on the AIM Market of the London Stock Exchange.
For more information, please see www.hsshiregroup.com
(http://www.hsshiregroup.com/) .

 

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