HSS sells heating and cooling division for £55m

Cross Rental Services (CRS) is to buy All Seasons Hire from its owner HSS Group for £55 million.

All Seasons Hire (ASH) - which was bought by HSS for £11.4 million in 2015 - supplies temporary large-scale heating and cooling equipment to a wide variety of customers in industry and manufacturing. It generated revenues of £18 million and operating profit of £6 million in the year ended 26 December 2020.

A 1.2 MW containerised boiler in All Season Hire’s rental fleet.

CRS is based in Andover on the south of the UK and is one of the UK’s leading HVAC and refrigeration rental specialist, operating climate control and refrigeration and catering divisions.

HSS said the proceeds of the sale would be used to pay down debt and would significantly decrease leverage to around 1.0 compared to 2.6 in 2020.

The company said reducing debt was one of its three strategic goals and would allow it to refinance its current credit facilities on attractive terms.

As part of the deal, HSS has reached a commercial agreement with CRS for the cross-hire of HVAC equipment and services. HSS said there was a similar, and successful, arrangement following the sale of its aerial platform business UK Platforms to Nationwide Platforms (now Loxam) in 2019.

Cross Rental Services rents boilers and other HVAC and refrigeration products.

Steve Ashmore, HSS Chief Executive, said; “Over the last four years HSS has undergone a radical transformation to become a modern, agile, digitally-driven business.

“During this time, we have continued to deliver against the strategic goals we set out in 2017 – to delever the Group, transform the tool hire business, and strengthen our commercial proposition – and today’s announcement marks the completion of one of these goals.

“ASH has made an important contribution to the Group over recent years and I would like to thank the team for their commitment. I am very pleased that the business will be joining Cross Rental Services, who recognise its value and will help it reach its full potential.”

CRS said; “The acquisition continues Cross’ exciting growth journey, with the combined business cementing CRS’ position as one of the largest specialist HVAC/R rental businesses in the UK and Irish market.

“The senior management team has exciting plans to bring the best of both businesses to bear for the benefit of customers and colleagues”.