Elliott Group picks up business, two firms sign three-year agreement
Speedy Hire has sold its accommodation hire business Speedy Space to Elliott Group for 拢34.9m, using the cash to pay off its debt.
The subsidiary provides a range of temporary accommodation and storage units, both portable and modular, for hire or sale from 14 transferring leasehold trading depots throughout the UK and as at 30 September 2010, the business had net assets of 拢52.4m.
As part of the deal Speedy retains the 拢3.6m working capital in the business at the date of the deal completion.
It has also signed a three-year exclusive deal with Elliott to share services through the respective companies鈥� client bases.
Steve Corcoran, chief executive of Speedy, said: 鈥淚 am very pleased to announce the disposal of the loss making Accommodation Hire business and the partnering agreement with Elliott.
鈥淔rom a customer service perspective, the partnering agreement we have entered into will provide our customers with a comprehensive accommodation hire offering from the UK鈥檚 leading businesses in this market. By working as partners with Elliott, our customers can continue to benefit from an integrated service. We look forward to developing this partnership and we see significant opportunities from working together closely in the future.
鈥淔inancially, the disposal delivers a pro-forma increase in both operating margin and return on capital. It also delivers a reduction in group borrowings and enables Speedy to focus on investing in our higher margin core operations and to develop further our non-hire services.鈥�
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