New Zealand's Hirepool completes Hirequip acquisition
By Murray Pollok08 May 2013
New Zealand’s Hirepool has completed the purchase of its biggest competitor, Hirequip, adding around NZ$75 million in revenues to its existing NZ$85 million business and giving it a market share exceeding 30%.
Hirequip's ownership has been uncertain since July 2012 when its parent company went into receivership.
New Zealand Rental Group (NZRG), parent company of Hirepool, said the two businesses would continue to run under their own brands in the near term, although is likely to change longer term. Brian Stephen, chief executive of Hirequip, remains with the business.
NZRG is a subsidiary of Australian private equity firm Next Capital, which also owns Onsite Group, Australia’s second largest equipment rental company.
Mike Foureur, executive director of NZRG, described the deal as the most exciting in the history of New Zealand’s hire industry; “We are delighted to have brought these two industry leaders together and see many strong opportunities for the combined businesses.
“With our New Zealand-wide footprint, we will be providing greater nationwide capabilities, a ‘best in class’ fleet and the most experienced staff in the industry.”
Mr Foureur said Hirequip, with its emphasis on heavy equipment, and Hirepool, which concentrates on specialist rental and small and medium size customers, were complementary.
Hirepool chief executive Mark Powell, who is also continuing with the company, said it would be making a significant investment in updating assets and expanding its product range; “Our focus is very much on growing the business.
“We have identified a number of opportunities where there are gaps in the New Zealand rental market and we intend to invest considerable capital expenditure to fill those gaps and augment our offering to our customer base.”
Mr Powell said all Hirequip employees have been offered, and accepted, positions under the new owners.
Hirequip’s chief executive Brian Stephen said the merged business had many opportunities; “For example, we are already doing a lot of work in Canterbury and, given our expanded resources, that will grow in the coming years.
“We also believe the Christchurch rebuild will take longer than some pundits are currently predicting so that will be a sustained effort for us going forward.”