HSS sells power activities

7 March 2024

HSS Hire Group has sold its power generation businesses ABird and APEX Generators to CES Global, a specialist temporary power and HVAC equipment provider, for an enterprise value of £23.25 million. 

HSS has also entered into a commercial agreement with CES for the cross-hire of power generators and related services. This follows on from similar agreements following the disposal of the group's aerial work platform business to Nationwide Platforms in 2019 and its heating, ventilation and air-conditioning business to Cross Rental Services in 2021. 

ABird and APEX were acquired in 2012 and 2014 respectively for a combined cash consideration of £10.5 million. As at 31 December 2022, the power business had total gross assets of £23.1 million and made a profit before tax of £3.9m for the year ended 31 December 2022. Taking account of the customary transaction adjustments, cash consideration for the disposal is expected to be £20 million.

Steve Ashmore, HSS Chief Executive, said: “Power has made an important contribution to the group and I would like to thank the team for their commitment over the years. I am very pleased that they will be joining CES, who recognise the business's value and will help it reach its full potential. HSS will continue to work with Power to provide our UK customers with all of their power solution hire requirements.

“Power represented £34 million of group revenues and £6 million of group operating profit for the year ended 31 December 2022. Around £20 million of this revenue was through the group's marketplace business which will continue to be provided under the commercial agreement.”

HSS has also reports that trading for 2023 was in line with market expectations, with year-on-year revenue growth of 5%. The group says that approximately 650 customers are now using its self-service platform, and over 90% of its revenues now comes from business clients.