VP expands with acquisition in Ireland

Photo: CPH website

UK rental business VP plc has acquired a majority share in specialist powered access company Charleville Hire and Platform (CPH).

Headquartered in Cork, Ireland, CPH is a family owned business mainly servicing the pharma, renewables, technology and food ingredient sectors.

Its access fleet includes both electric and diesel boom and scissor lifts as well as vertical lifts and scaffold systems. 

The company, which has 30 employees and generated revenues of €9.5 million and EBITDA of €5.7 million in 2023, also rents excavators, dumpers, forklifts and telehandlers.

Under the terms of the agreement, VP has placed an initial cash consideration of €12.1 million towards the deal for 90% of the shares, with the remaining 10% to be acquired over a three-year period.

VP said that 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 company added that the acquisition comes as it continues its strategy to focus on growing its specialist operations, with board members stating that they believe it 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.”

Anna Bielby, chief executive of VP, said, “This acquisition is exactly in line with our renewed strategic focus on building our highly differentiated, specialist customer offering. CPH brings to the Group a market-leading powered access fleet in a growing Irish market while complementing our existing divisions.

“The CPH management team has a track record of successfully growing the business and, with the opportunities that exist in the Irish market, we believe they are well placed for further expansion in the future. I am delighted to welcome the CPH team to Vp.”

The acquisition of CPH is the latest move that VP has made in Ireland, with it also operating its Groundforce and TPA businesses in the country through its Vp Equipment Rental (Ireland) subsidiary. 

VP specialist businesses offset “challenging macro-economic environment”

At the same time, the company has also issued a trading update for the first hald of the 2024 financial year. It said that despite a backdrop of “challenging macro-economic conditions” in many of its end markets, its performance remains resilient due to specialist businesses and diversified revenue streams.

It added that non-residential construction activity remains subdued, while it is noting year on year growth within the infrastructure market. Its Brandon Hire Station which was restructured earlier this year is seeing progress with a new management team despite slower than expected improvements. 

Bielby added, “Despite an uncertain and challenging economic backdrop, we have delivered a resilient performance which is testament to our specialist businesses and diversified revenue streams.

“We are encouraged by initial steps taken by the new UK Government to reinvigorate its industrial and housebuilding strategies. However, further clarity and action in these areas is needed to boost confidence and drive investment and activity.”