Hirepool seeks clearance to buy rival Hirequip out of receivership

BUSINESSDESK: Equipment rental company Hirepool has sought clearance by the anti-trust regulator to buy rival Hirequip out of receivership in a bid to get greater exposure to the heavy construction sector as the Christchurch rebuild starts hitting its stride.

Hirepool, which is 75% owned by Australian private equity firm Next Capital, has requested the Commerce Commission clear its acquisition, saying the merger will not substantially cut competition as they largely operate in different areas.

A sale and purchase price agreement has yet to be negotiated, though Hirepool's takeover would have to satisfy Hirequip's secured creditor Westpac Banking Corp, which is owed $117.8 million. Hirequip's unsecured creditors are also owed $76.9 million, according to the first receiver's report.

The company indicated it was willing to go beyond merely paying the purchase price, according to the public version of its application, which had sections blacked out.

Hirepool says the deal would give it a "meaningful presence in the high value heavy and building segments", an area it is not really exposed to. Its existing customers are largely small and medium construction businesses which it targets with specialist equipment, it says.

The company pointed to the Christchurch earthquakes as a "catalyst for growth" and led to new entrants into the market and expansion by existing players.

Hirequip's parent shareholding companies Pacific Equipment Solutions, PES Finance and Hire Equipment Group are the entities placed in receivership in July, and came just a month after boss Rob Nichols was quoted as saying the company could seek a listing on the NZX as earnings recovered.

This article is tagged with the following keywords. Find out more about My Tags

Comment & Question

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7893 0.0008 0.10%
AUD 0.9088 0.0004 0.04%
EUR 0.6369 -0.0006 -0.09%
GBP 0.5042 0.0000 0.00%
HKD 6.1222 0.0025 0.04%
JPY 93.0290 0.1430 0.15%

Commods

Commodity Price Change Time
Gold Index 1201.1 7.690 2014-11-21T00:
Oil Brent 78.6 -0.120 2014-11-21T00:
Oil Nymex 76.5 0.710 2014-11-21T00:
Silver Index 16.4 0.260 2014-11-21T00:

Indices

Symbol Open High Last %
NZX 50 5526.9 5526.9 5526.9 -0.56%
NASDAQ 4751.0 4751.6 4701.9 0.24%
DAX 9521.2 9736.1 9484.0 2.62%
DJI 17721.0 17894.8 17719.0 0.51%
FTSE 6678.9 6773.1 6678.9 1.08%
HKSE 23883.3 23936.3 23437.1 1.87%
NI225 17285.7 17381.6 17300.9 0.33%