Acquisition sees Speedy Hire strengthen rail sector services

Speedy Hire PLC, the Merseyside-based equipment and plant hire company, has acquired rail service business OHP Limited (OHP Group) for an initial cash consideration of £1.5m.

The deal includes the assumption of net debt of around £1.7m and a further payment of £800k, dependent on OHP’s future performance.

OHP Group employs a team of 25 and encompasses Rail Hire UK, which offers overhead line equipment for hire in the rail sector.

The firm’s revenues for the 12 months to November 30 stood at £2.6m, while normalised earnings before interest, tax, depreciation and amortisation were around £800k. Revenues for the company’s Rail Hire UK brand are predicted to grow across the next financial year due to newly secured contracts and an expanding market for overhead line services.

The acquisition is expected to be earnings enhancing within the next year.

Speedy Hire chief exec Russell Down said: “I am delighted to announce this acquisition which will help expand our business in this specialist sector of a growing UK rail market and further enhance our market position.”

Following the transaction, OHP’s founder and managing director, Martin Davies, will retain his position in the company.

Last November, Speedy Hire bosses forecast the firm’s financial position to stabilise following a series of emergency cost-cutting measures.