Business
Acquisition of Charleville Hire and Platform Ltd
Acquisition of Charleville Hire and Platform Ltd.
About this update from Vp Plc
[{"type":"text","content":"\n\n\n\n\n\n\n \nFor release on 3 October 2024\n\n\n \n\n\n\n\n \nVp plc\n('Vp', or the 'Group')\n \nAcquisition of Charleville Hire and Platform Ltd\n \nAcquisition of leading specialist powered access business in Ireland\nVp plc, the specialist equipment rental business, today announces the acquisition of a majority interest in Charleville Hire and Platform Ltd (\"CPH\").\nCPH is one of Ireland's leading, specialist powered access companies principally servicing the growing pharma, renewables, technology and food ingredient sectors. It is a family owned and run business with a strong management team and is based near Cork in the Republic of Ireland.\nTotal consideration for the entire share capital of CPH includes an initial cash consideration of €12.1 million. Vp has acquired 90% of the shares in CPH, with the remaining 10% to be acquired over a three-year period. Subject to business performance against stretching EBITDA targets, a further maximum deferred and earn out payment of €21.7 million may be payable across the second and third anniversaries of the acquisition. The acquisition will be funded from the Group's existing debt facilities and cash resources.\nIn June 2024, Vp set out its updated strategy with a focus on growing its specialist capabilities in the equipment rental market. The Vp Board believes that this acquisition offers clear strategic benefits building on the Group's specialist capabilities, particularly in the access market, as well as providing a significant growth opportunity and a platform for further expansion into the Irish market.\nKey members of the CPH senior management team will retain a minority interest and remain fully committed to the business. CPH has thirty employees and offers a diverse portfolio of machinery, the majority of which is zero emissions at the point of use. It operates out of a single location in Charleville and has a large number of blue-chip customers.\nFor the year ended 31 December 2023, CPH generated unaudited revenue of €9.5 million, EBITDA of €5.7 million, and profit before tax of €2.3 million. It has unaudited gross assets of €13.9 million. The acquisition is expected to contribute to Group growth and be immediately accretive to Group EPS. Following completion of the acquisition, the Group's net debt /adjusted EBITDA will remain comfortably bel...