Vp for sale
28 April 2022
Vp has announced this morning that it is for sale. Its controlling shareholder Ackers P Investment Company Ltd, which is connected to Vp's chairman Jeremy Pilkington, has indicated to the Board its desire to explore opportunities to dispose of its entire shareholding in Vp, representing approximately 50.26% of the issued share capital of the company.
The Vp group comprises Brandon Hire Station (pictured); shoring and piling specialist Groundforce; the portable roadway business TPA; safety specialist ESS; mechanical and electrical equipment provider MEP Hire; Torrent Trackside; UK Forks; energy equipment supplier Airpac Rental; and the TR Group calibration specialist serving Australasia.
Vp is a long established group which has evolved over a 60-year trading history. The company was founded in 1954 as Vibratory Roller and Plant Hire (Northern) Ltd and floated on the UK stock market in 1973 as Vibroplant plc. In 2000, the company exited its historically core general plant business to focus on higher return specialist activities.
Jeremy Pilkington, commented: "Vp's controlling shareholder, a company connected to me, has decided that it wishes to diversify its investments. This does not in any way reflect a dissatisfaction with the company or its direction. Indeed, they are strongly supportive of management and highly satisfied by the continuing strong performance of the group. But they do have to take into account their current and future obligations to my family as a whole."
Neil Stothard, chief executive of Vp, said: "Following the indication from the controlling shareholder that they would like to explore opportunities to dispose of their shares, the Board thoroughly considered all strategic options in partnership with our advisers. In considering these options the Board, including Jeremy, has had regard to the interests of all the company's stakeholders. The Board has unanimously concluded that it would be appropriate to investigate the sale of the company and is therefore launching a formal sale process.
“The Board intends to seek a buyer who will respect our unique heritage and highly valued employee base, whilst supporting our longer-term growth ambitions and ensuring we continue to develop our business and maintain an environment whereby the business can continue to deliver long term, quality returns, to our shareholders," he added.
● COMMENT: So who might be interested in buying Vp? If another UK national hirer made an approach, it could be referred to the Competition and Mergers Authority given the size of the business (its current market capitalisation is £377 million). Could Vp be attractive to an overseas buyer seeking a significant foothold in the UK market? Or, given the breadth of the group and the many specialist markets that Vp serves, might it appeal to a private equity investor?
