26.08.2016

Speedy sells heavy equipment fleet

Troubled UK rental company Speedy has sold its fleet of larger earthmoving and road equipment to Ardent Hire for £14.9 million.

The fleet, which largely includes dumpers, heavy rollers and excavators generated revenues of £3.2 million and operating profits of £1.9 million in the 12 months to July. The deal includes a five year re-hire agreement with Ardent, with the option to extend it by a further two years.

Speedy chief executive Russell Down said: "I am pleased that we have been able to conclude this agreement which both guarantees continuity of supply to our customers and will enhance our return on capital. The disposal is consistent with our strategy of focusing on core operations and further strengthening the group's balance sheet."

Ardent was formed last year by a group of investors including private equity firms Searchlight Capital Partners and Duke Street and led by ex-Speedy chief executive Steve Corcoran, to acquire and merge Fork Rent and One Call Hire into the new company. Corcoran has since stepped down