HSS Hire Group Sells Irish Subsidiary for £26.2m
Why we think this is good
The sale of HSS Hire Ireland Limited for an attractive valuation of £26.2m, representing a 6.9x EBITA multiple, is a positive development for the group. The disposal will allow the company to focus on its two standalone businesses in the UK, THSC and HSS ProService, and strengthen its balance sheet. While the sale is subject to competition clearance, the financial details provided suggest it is a financially sound transaction for shareholders.
Key Points
- HSS Hire Group plc has agreed to sell its Irish subsidiary, HSS Hire Ireland Limited, to Grafton Group plc for £26.2m
- The transaction represents a 6.9x EBITA multiple, which is an attractive valuation
- The disposal will allow HSS Hire Group to focus on its two standalone businesses in the UK, THSC and HSS ProService
- The proceeds will be used to strengthen the group's balance sheet
Summary
HSS Hire Group plc has agreed to sell its entire issued share capital of HSS Hire Ireland Limited to Grafton Group plc for a total gross consideration of c.£26.2m, representing a transaction multiple of c.6.9x EBITA. The disposal will allow the company to continue to focus on driving the long-term performance of its two standalone businesses in the UK, THSC and HSS ProService, and strengthen its balance sheet. For the year ended 28 December 2024, HSS Hire Ireland had unaudited revenues of £27.0m and unaudited EBITA of £3.9m.