Proposed Disposal of UK Platforms Limited

About this update from Proservice Building Services Marketplace Plc

[{"type":"text","content":"\n \nRNS Number : 1885V HSS Hire Group PLC 19 July 2018  \n\nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO, OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION\n \nCertain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.\n \n19 July 2018\nHSS Hire Group plc\n \n(\"HSS\" or the \"Group\")\n\nProposed Disposal of UK Platforms Limited\n \nHSS announces that it has entered into a conditional agreement with Nationwide Platforms Limited (\"Nationwide\"), a wholly-owned subsidiary of the Loxam Group (\"Loxam\"), with respect to the sale of UK Platforms Limited (\"UK Platforms\"), for a total Enterprise Value of £60.5 million (the \"Disposal\"). HSS will use the majority of the proceeds from the sale to pay down debt.\n \nThe Disposal is consistent with HSS's strategic agenda of delevering the Group through the reduction in overall debt and enabling greater focus on the core Tool Hire business.  The Directors believe that the consideration represents an attractive valuation which will enable shareholder value to be realised.\n \nAs part of this transaction, HSS has entered into a long term strategic commercial agreement with Nationwide to provide powered access equipment to complement HSS's existing fleet.\n \nDue to its size, the Disposal constitutes a Class 1 transaction under the Listing Rules and is therefore subject to the approval of shareholders. A circular containing further details of the proposed Disposal and containing the notice convening a general meeting to consider a resolution to approve the Disposal, will be sent to HSS shareholders as soon as practicable.\n \nTrading for the Group in the first half of 2018 is in line with management expectations;  underlying revenue growth is greater than 7%, which, when combined with delivered cost initiatives, has materially benefited the Group's performance.  Net debt leverage continues to reduce and is around 3.8x(1) as at 30th June 2018 (June 2017: 4.3x).\n \nSteve Ashmore, Chief Executive, commented:\n \n\"Since our Strategic Review last December we have made substantial progress against o...

More updates from Proservice Building Services Marketplace Plc