Equipment rental group Vp (VP.) has announced that it has purchased Melbourne-based TR Pty Ltd for A$17.4m (£9.2m) plus $6.6m in assumed debt. TR operates from 13 locations and is engaged in the specialist rental of test and measurement, communications and audiovisual equipment in Australia, New Zealand and Malaysia.
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The move has a strategic undertone, as it has been undertaken to expand Vp's presence in the region, but it also promises to be earnings-enhancing right off the bat. Equity Development, an independent investment research company, has concluded that the transaction was struck "at an attractive price" equivalent to 6.6 times adjusted operating profits, against an average multiple of 10.8 for comparable deals completed by peers.
