Speedy Hire buys Birse subsidiary for £6.25m

Speedy Hire has acquired the business and certain assets of The Cabin Company Limited (TCCL), a subsidiary of the Birse Group, for £6.25m.

TCCL is a North West-based temporary accommodation hire business operating a hire fleet of 950 portable accommodation units. The business hires both to Birse Group and to third party customers in the construction and civil engineering sectors throughout the UK.

The acquisition will be fully integrated into Speedy Space and includes a five-year exclusive national supply and services agreement for temporary accommodation with Birse Group.

TCCL has particular expertise in providing customers with added-value site set-up services and extends the service offering of Speedy Space. The acquisition will improve the Group's profile in the civil engineering sector and will also establish a presence for Speedy Space in Manchester.

Turnover and operating profit attributable to TCCL for the year ended 30 April 2004 was £4.8m and £0.7m respectively. As at 31 October 2004, Birse Group's net book value of the net assets being acquired was £4.6m.

Although the acquisition is subject to approval by Birse Group shareholders completion is expected to take place in early May.

Steve Corcoran, chief executive, said: "This acquisition will provide Speedy Space and other Group businesses with access to a number of new customers and is consistent with our strategy of pursuing national, long-term agreements with major construction companies."