United Kingdom’s largest tool rental company continued its acquisition spree last week with the purchase of the tool and acquisition hire business and fixed assets of Amec Logistics and Support Service Ltd. Amex LSS provides tools, lifting equipment, general industrial and construction rental, temporary accommodation units and surveying equipment.
LSS operates from 10 U.K. depots.
Amec is a major construction and industrial company and supplier of consultancy, engineering and project management services to the world’s energy, power and process industries, with annual revenues of more than £2.2 million.
Speedy, based in Newton-le-Willows, Great Britain, said it paid £12.5 million (about U.S. $24.5 million) for the company. As part of the transaction, Amec’s industrial division has entered into a four-year exclusive supply agreement with Speedy to provide a wide range of equipment for rent in a variety of industrial sectors. A preferred supplier agreement has also been established for other Amec divisions in the U.K.
“The securing of a four-year trading agreement will enable both organizations to maximize supply chain opportunities while assisting Amec in its drive for operational excellence in the key areas of health and safety compliance and quality assurance.”
In November, Speedy, which has spent £218 million on acquisitions during the past two years, reported a 17.4-percent rise in half-year profits to £18.2 million, while revenues grew 35.7 percent to £209.5 million. Its chairman David Wallis said he believed the construction market would continue to grow in the U.K., and that Speedy’s large and diverse client base would help protect the company from the predicted slowdown in the housing market. The company believes the 2012 Olympics would spur growth with massive construction projects.