Speedy Hire has announced the acquisition of a sustainable power company for just over £20m.
The Newton-le-Willows-headquartered business has snapped up Green Power Hire (GPH) from principal investor Russell's (Kirbymoorside) Limited, and four other shareholders, for £20.2m.
Speedy Hire said the deal would "enable the continuing rapid development of GPH's business, with access to Speedy's broad customer base, asset rental expertise, data and AI capabilities and investment in expanding the number of BSU's [battery storage units].
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For the year ended October 31, 2022, GPH generated unaudited revenues of £400,000 and a pre-tax loss of £200,000.
Speedy Hire chief executive Dan Evans said: "The acquisition of Green Power Hire is further evidence of our Velocity strategy in action, strengthening our market leadership in combining product innovation and sustainability, and positioning Speedy well in a high growth segment of the market.
"Alongside investments such as our partnership with Niftylift and our proposed JV with AFC Energy, the acquisition progresses the sustainable and technological evolution of the sectors we operate in, supports our ambitious plan to become a net zero business by 2040 and will deliver long term benefits to our customers, our people and our investors."
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The deal comes as Speedy Hire issued a trading update to the London Stock Exchange. The business said its first-half performance had been "satisfactory" with revenue from its national customers growing by 5% compared to the same period in 2022.
It added: "As in prior years, the group expects a second half weighting to its hire revenues and profits, as the winter programmes commence and new contracts extended and won fully mobilise in the period, including those communicated at year end.
"In addition, Speedy has a strengthening pipeline of new opportunities going into the second half of the year. Consequently, the group anticipates full year performance to be in line with expectations."