News Item: 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 28th December 2024, HSS Hire Ireland had unaudited revenues of €31.9m (£27.0m) and unaudited EBITA of €4.6m (£3.9m). As at 28th 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 28th December 2024
A further announcement will be made following finalisation of the completion accounts.