British company Speedy Hire has bought Waterford Hire Services, an independent tool and equipment hire business, for €6.5 million.
Waterford Hire, which employs 31 staff and operates from two depots in Waterford city and south Kilkenny, was owned by Éamonn McKenna who set up the business in 1980.
Mr McKenna was paid €5.2 million in cash, with the balance in the form of a maximum of 74,587 Speedy Hire shares which will be issued on February 29th, 2008, depending on Waterford Hire's performance in its financial year ending on December 31st, 2007.
The latest accounts for Waterford Hire show that it had a gross profit at the end of 2006 of €2.88 million, up from €2.67 million the previous year.
Profit on ordinary activities before tax at the end of 2006 was €474,167, while the company had a retained profit at the end of the year of €1.956 million, up from €1.495 million at the end of 2005.
Speedy Hire said it expected local management and staff to remain with the company.
Mr McKenna, who was advised in the deal by CFM Capital, will continue to work for the company on an informal consultative basis, but will be concentrating primarily on expanding his other business interests. He runs Storeall, a warehousing business in Waterford which includes a number of major pharmaceutical companies among its clients.
The acquisition is the first by Speedy Hire in the Republic and adds to its existing depots in Dublin and Belfast, both of which are in their second full year of operation. The company, which has turnover of about £400 million and 540 outlets, said it plans to develop a national network in Ireland over the coming years.
"We are pleased to be building on the good start that we have made in Ireland where both the demand for our products and the growth prospects are strong," said Steve Corcoran, chief executive of Speedy Hire.
"Through our current depots and the addition of Waterford Hire, Speedy Hire will be well placed to capitalise on the significant infrastructure investment expected in the southeast of Ireland over the coming years."
