Hirepool Makes New Acquisitions
Hirepool Makes New Acquisitions in Christchurch & Auckland
Auckland, 16 August 2006: A month after securing a new owner, New Zealand rental equipment leader, Hirepool Limited, has gone on the acquisition trail.
Managing Director, Tenby Powell, confirmed today that Hirepool has purchased Port-a-Loo (Christchurch) and Davies Hire (Auckland), two well-established businesses in those key markets. They take effect on September 1. The existing management and staff at both sites will be retained.
Last month Goldman Sachs JB Were NZ divested its investment in Hirepool, acquired in July 2003 through its Hauraki Private Equity No 1 Fund, to Australian private equity firm Next Capital for NZ $ 172 million. Under the deal Next Capital took a stake of 80% in the business with the balance held by Hunter Powell Investments and senior Hirepool management.
At the time Mr Powell said Next Capital had made it clear they were keen to see Hirepool continue to seek out new growth opportunities, and both businesses were seen as strategic targets.
“We established a foothold in the portable sanitation market when we purchased the Port-a-Loo Auckland two years ago and have since acquired Port-a-Loo Wellington, Marlborough and now Christchurch,” he says. “The market, estimated to be worth $ 25 million a year, is continuing to show strong growth, and the Christchurch acquisition significantly improves our national coverage and reinforces our commitment to the South Island.”
He says Davies Hire is “an icon Auckland landmark that has been on the same site in Dominion Rd for more than 50 years. But of even greater significance is that it was one of the few remaining independent general rental hire businesses between the CBD and West Auckland and has a strong general equipment and party hire customer base.”
This lifts Hirepool’s total of branches and business units throughout New Zealand to 54, including 15 in the South Island. When Mr Powell took over in July 2003 Hirepool had 14 branches, with only one in the South Island.