LONDON: HSS Hire Group has entered into an unconditional agreement to sell Laois Hire Services Limited, the Group’s Irish large plant hire business, to Briggs Equipment Ireland Limited for a cash consideration of €11.2 million.

The proceeds will be used to invest in the core Tool Hire business in line with the Group’s strategy. With Laois representing around 4% of Group revenue for the year ended 28 December 2019, the Directors believe that the consideration represents an attractive valuation for shareholders.

As part of this transaction, HSS has entered into a commercial agreement with Briggs for the cross hire of equipment to ensure the broadest possible distribution of, and customer access to, the parties existing fleets.

HSS expects to report its 2020 full year results week commencing 26th April 2021 and confirms that trading for the year was in line with management expectations.

The Group has seen encouraging momentum during the first three months of 2021 and EBITDA for the period to 3rd April 2021 is comfortably ahead of the comparable prior year period.

Steve Ashmore, Chief Executive, commented: “Over the last four years, we have made substantial progress against all three of our strategic priorities: to delever the Group, transform the Tool Hire business and strengthen our commercial proposition. During this time we have transformed HSS to a modern, agile, technology-driven business, improving trading, reducing cost and increasing the overall profitability of the Group. Today’s announcement is another step forward on our strategy, enabling us to increase focus on our core Tool Hire business.

Laois has made a good contribution to the Group over recent years and I would like to thank the team for their commitment. I am very pleased that the business will be joining Briggs who recognise its value and whose expertise will help it reach its full potential.

Given HSS’s existing partnership with Briggs, we will continue to provide our customers in the Republic of Ireland with all of their large plant requirements.”

HSS Hire Group plc provides tool and equipment hire and related services in the UK and Ireland through a nationwide network and its OneCall rehire business. 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. Over 90% of its revenues come from business customers. HSS is listed on the AIM Market of the London Stock Exchange. For more information please see www.hsshiregroup.com

Laois Hire Services Limited specialises in the sale and hire of small plant equipment, including excavators, rollers, dumpers and large pumps, across the Republic of Ireland serving a wide multitude of sectors from Construction to Traffic Management. Laois was acquired in 2005. As at 27^th June 2020, Laois had total gross assets of €10.6 million and made a loss before tax of €1.8 million for the year ended 28 December 2019.

Briggs Equipment is an engineering services and asset management specialist that has transformed the contract hire of industrial machinery. Operating throughout the UK & Ireland, Briggs has a wide ranging proposition that extends beyond materials handling. In addition to being the Hyster-Yale Group’s exclusive UK distributor, Briggs has many other strategic partnerships with suppliers that provide industrial cleaning, aerial access, groundworks, plant and machinery. For more information please visit briggsequipment.co.uk