Considering the strength of its UK business during the last year, it is no surprise VP (VP.) is scaling up its domestic operations. The tool hire specialist has acquired Brandon Hire for almost £42m, in addition to assumed net debt of £27m. The purchase has been funded from new banking facilities with its existing lenders.
Brandon Hire has more than 900 employees and operates across 143 UK locations, predominately catering to SMEs. Since it operates a similar model to VP’s Hire Station – which also serves household customers – management hopes the acquisition will deliver economies of scale in purchasing and operations. During 2016 Brandon Hire generated £80m in revenue and pre-tax profit of £6m. Shares in Vp jumped 6 per cent on the morning of the announcement.
