Construction equipment hire company Brandon Hire has been acquired by rival Vp for £41.6m.
Publicly listed Vp said the deal would deliver “economies of scale in purchasing and operations and will create a leading specialist tool hire business” in its UK division.
Vp said it had financed the deal through bank lending and had taken on £27.2m of Brandon’s debt.
“The acquisition of a well-established business of the size and quality of Brandon Hire is a significant development for Vp,” said Vp chairman Jeremy Pilkington.
“This transaction represents a major step-change in the scale and scope of our specialist tool hire offering.”
Vp owns a number of construction equipment businesses, including Hire Station, which the company said was closely aligned to Brandon’s operational model.
Brandon Hire’s main customers at its 143 nationwide outlets are SMEs operating in local markets.
The firm’s last full-year accounts covering 2016 showed pre-tax profit of £934,000 on turnover of £79.8m.
Shares in Vp were up 4.4 per cent in early morning trading.