REG - Vp PLC - Acquisition of Charleville Hire and Platform Ltd

VPAnnouncement

03/10/2024 07:00

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RNS Number : 7438G  Vp PLC  03 October 2024

 For release on 3 October 2024

 
Vp plc

('Vp', or the 'Group')

 

Acquisition of Charleville Hire and Platform Ltd

 

Acquisition of leading specialist powered access business in Ireland

Vp plc, the specialist equipment rental business, today announces the
acquisition of a majority interest in Charleville Hire and Platform Ltd
("CPH").

CPH is one of Ireland's leading, specialist powered access companies
principally servicing the growing pharma, renewables, technology and food
ingredient sectors. It is a family owned and run business with a strong
management team and is based near Cork in the Republic of Ireland.

Total consideration for the entire share capital of CPH includes an initial
cash consideration of €12.1 million. Vp has acquired 90% of the shares in
CPH, with the remaining 10% to be acquired over a three-year period. Subject
to business performance against stretching EBITDA targets, a further maximum
deferred and earn out payment of €21.7 million may be payable across the
second and third anniversaries of the acquisition. The acquisition will be
funded from the Group's existing debt facilities and cash resources.

In June 2024, Vp set out its updated strategy with a focus on growing its
specialist capabilities in the equipment rental market. The Vp Board believes
that this acquisition offers clear strategic benefits building on the Group's
specialist capabilities, particularly in the access market, as well as
providing a significant growth opportunity and a platform for further
expansion into the Irish market.

Key members of the CPH senior management team will retain a minority interest
and remain fully committed to the business. CPH has thirty employees and
offers a diverse portfolio of machinery, the majority of which is zero
emissions at the point of use. It operates out of a single location in
Charleville and has a large number of blue-chip customers.

For the year ended 31 December 2023, CPH generated unaudited revenue of €9.5
million, EBITDA of €5.7 million, and profit before tax of €2.3 million. It
has unaudited gross assets of €13.9 million. The acquisition is expected to
contribute to Group growth and be immediately accretive to Group EPS.
Following completion of the acquisition, the Group's net debt /adjusted EBITDA
will remain comfortably below 2x.

Commenting on the acquisition, Anna Bielby, Chief Executive of Vp, said: "This
acquisition is exactly in line with our renewed strategic focus on building
our highly differentiated, specialist customer offering. CPH brings to the
Group a market-leading powered access fleet in a growing Irish market while
complementing our existing divisions. The CPH management team has a track
record of successfully growing the business and, with the opportunities that
exist in the Irish market, we believe they are well placed for further
expansion in the future. I am delighted to welcome the CPH team to Vp."

- E N D S -

 

The information contained within this announcement is deemed by Vp to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) no. 596/2014 (as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018). On the publication of this announcement
via a Regulatory Information Service, this inside information is now
considered to be in the public domain.

 

 

For further information:

 Vp plc
 Anna Bielby, Chief Executive               Tel: +44 (0) 1423 533 400
 Keith Winstanley, Chief Financial Officer  www.vpplc.com (http://www.vpplc.com)

 

 Media enquiries:

 Sodali & Co
 Justin Griffiths/Nick Johnson/Amy Gibson                Tel: +44 (0) 2071 006 451
                                                         vp@client.sodali.com

 

Notes to Editors

Vp plc is a specialist equipment rental business providing equipment, people,
services and support for specialist projects. It focuses on niche sectors
principally in the Infrastructure, Construction, Housebuilding and Energy
markets in the UK and overseas. Businesses include: Groundforce, TPA, Torrent
Trackside, Brandon Hire Station, MEP, ESS, UK Forks, Airpac Rentals and Tech
Rentals.

 

For the year ended 31 March 2024, the Group recorded revenue of £368.7
million and profit before tax, amortisation and impairment of goodwill, trade
names and customer relationships and exceptional items of £39.9 million. For
more information go to www.vpplc.com (http://www.vpplc.com) .

 

Our approach to environmental and social impact is guided by our core values
and responsible business framework, for more information go to:
www.vpplc.com/esg-and-governance/ (http://www.vpplc.com/esg-and-governance/) .

 

 

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