HireQuip owners in receivership, operating units to be sold

BUSINESSDESK: The owners of equipment rental company HireQuip have been placed in receivership and the operating business is being prepared for sale, KordaMentha says.

The receivership comes less than a month after HireQuip director Rob Nichols was quoted saying the company could seek a listing on the NZX as earnings recovered.

HireQuip’s parent shareholding companies Pacific Equipment Solutions, PES Finance and Hire Equipment Group are the entities placed in receivership, KordaMentha’s Brendon Gibson said.

They are ultimately owned by Tasman Capital Partners (NZ), which lists Nichols among three Australian owners.

Mr Gibson said the HireQuip operating businesses would continue as usual as they are readied for sale.

“The financiers are committed to the business and will continue to provide support to achieve a successful sale process. We do not anticipate any need for us to become involved in the businesses themselves.”

As recently as last month, HireQuip was reported to be considering a bond issue to institutions to raise between $20 million and $60 million.

The company has changed hands several times in the past six years, having sold to PES Finance Ltd for $165 million in 2006.
 

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17 Comments & Questions

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I glad a private equity company came along and took these shares off my hands now.

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who's next - country is in free fall - well done parliment

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Russel Norman is that you??

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While politicians in parliament can be blamed for much, i don't think the failure of the hire firm is one of them.

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Reported in AFR that group is banked by Westpac with debt of c$115m

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Other likely trade buyers all have financial issues themselves - is there any equity available in this sector?

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doesn't actaully say the company is trading poorly only that the Equity fund owners are in receivership. In past HireQuip was a profitably trading business though probably affected by the building downturn.

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Over 10 years ago... They have closed so many branches lately.

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No doubt they are geared at about 99% debt.

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Maybe if they stopped spending millions to change their logo every 5 minutes they might make some money.

Ex-employee

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Another one bites the dust.

When will the economy recover and lift us from this puddle of mud?

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Tenby Powell and Sharon Hunter to the rescue?

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It is not the economy, it is the over leveraged Private Equity investors. Remember Yellow pages?

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Since the original owners sold the majority of the business to Goldman Sachs/JB Were back in the early 00's this business has changed hXands more times than a cheap hooker. Each time the new owner has assumed exponential profit growth and has re-geared the business accordingly (Private Equity 101).

Just so happens that the music has now stopped and there are no more chairs left. Perhaps the NZ Government should consider stronger interest deductability rules like in Germany (i.e. 30% of EBITDA) to flush these parasites out.

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Goodman Sachs/JB never owned HireQuip, as far as I'm aware that was Hirepool.

To the noddy exemployee who made the brand comment - it hasn't changed since about March 2009 - 3 years ago is hardly every 5 mins

My understanding is that HireQuip itself is trading fine and on it's way back up, it has recently opened 2 new branches, invested in new fleet, is upto date with creditor payments.

It's not a case of another one bites the dust, it's just a case of the parrent companies going into receivership

From a current employees perspective apart from being part of a sale process I'm confident in HireQuip's team and ability to get over the temporary roadhump and to continue to improve as we have done since the bottom of the economic downturn

I'm confident that all will be OK and given the opportunity to invest at the right price I probably would!

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Rob Nichols is that you??

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Perhaps receivers need to look at director fees and lifestyle payments whilst the company has been having great difficulty meeting it's obligations. Again the hard working employees will be the ones who lose out
Should not have been allowed to reach such debt levels

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