The United Kingdom’s Competitions & Markets Authority, which operates similarly to the Securities Exchange Commission in the United States, has notified equipment rental company Vp that it intends to investigate the recently completed acquisition by Vp of Brandon Hire Group. Vp said that although it conducted a detailed due diligence exercise, including assessing potential competition considerations, it will cooperate fully with the CMA in its investigation.
Vp announced the £41.6 million (about U.S. $55.7 million) acquisition of Brandon Hire on November 8 to be funded by cash from new banking facilities. Vp also intends to assume £27.2 million worth of net debt. The group said at the time that the acquisition will deliver economies of scale in purchasing and operations over the medium term.
On November 21, Vp posted its first half results, reporting an increase in pretax profit to £20.3 million, up from £17.7 million a year earlier, a 14.7-percent hike. Revenue rose to £136 million from £121.7 million, an 11.7-percent increase.