Speedy Hire swallows Glasgow business in multi-million deal

Last month, Speedy Hire reported a 24.1 per cent increase in adjusted profit before tax to Â£13.4m. Picture: Contributed

The group said it had acquired the entire issued share capital of Geason Holdings from Ian and Robert Kilpatrick and connected family trust companies.

Geason provides construction and professional services training across the UK and has more than 1,100 apprentices and 500 National Vocational Qualifications (NVQ) learners currently on programmes.

Stock market-listed Speedy Hire said it had paid an initial £9 million to acquire the business with net cash assumed of £300,000.

A contingent sum of up to £26m may be payable in cash based on a multiple of underlying earnings, dependent on the combined performance of Geason and Speedy’s training business in the three years following the acquisition.

Geason’s unaudited accounts for the 12 months to 31 October reveal revenues of £8.3m, earnings before interest, tax and amortisation (Ebita) of £1.7m and gross assets of £2.6m.

Speedy Hire, which was founded in 1977, said the takeover would allow the group to better support its customers in training and developing their staff and accelerate the growth of its services businesses.

Chief executive Russell Down said: “This acquisition expands our training services offering and allows us to deliver flexible, progressive training programmes to support customers across the UK. I warmly welcome Ian, Robert and Geason employees to Speedy.”

Last month, Speedy Hire reported a 24.1 per cent increase in adjusted profit before tax to £13.4m for the six months to the end of September. Revenue, excluding disposals, rose by 6.5 per cent to £192.8m. The firm flagged a full-year result in line with its expectations.