National Hire decides to purchase instead of rent 24/10/05 By: Alex Lu
National Hire Group Limited (NHR) today announced the acquisition of AH Plant Hire from Nylex Limited (NLX) for $115 million. The company said the purchase would add further scale benefits and business synergies, providing an increase in National Hire earnings per share for 2006 and beyond.
AH Plant Hire supplies rental equipment to the civil and road construction markets and operates in 20 service centres throughout the eastern states and Southern Australia.
National Hire said the acquisition provides diversification in geographic locations, which reduces the group’s exposure to the cyclical nature of the rental industry.
“Being a major participant in the civil and road construction segment the acquisition provides the National Hire Group with the opportunity to further benefit from Government Infrastructure initiatives and investment, which is in accordance with the company’s strategic intent,” the group added.
National Hire noted the purchase would also increase its cross selling opportunities for core products including Allight lighting towers and pumps, FG Wilson generators and variable message boards.
The company concluded it would continue to drive its market position in these product groups in both sales and rental.
The acquisition is subject to a number of conditions and expected to be completed in early January 2006.
AH PLANT HIRE review:
AH Plant Hire is Australia's foremost hirer of "heavy" plant and equipment. Supplying contractors, state and local authorities, utilities, railways, agribusiness, industries, mining, natural resources and the environment throughout regional and metropolitan Australia
NHR Price at posting:
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