Hirepool Trucks on with Purchase of Henderson Rent

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Hirepool Trucks on with Purchase of Henderson Rentals

Auckland, 30 January 2007: New Zealand rental equipment leader Hirepool Limited has started 2007 where it left off last year by extending its foothold in the industrial sector with the purchase of well established truck and commercial vehicle company Henderson Rentals Ltd, which takes effect on February 1.

Last November Hirepool stepped into the energy sector with the acquisition of Power Plant Supplies, the No.2 player in the equipment distribution market. Chief Executive Tenby Powell says the purchase of Henderson Rentals “secures for the group a very well established leader in another important market for us.”

Established in 1964 Henderson Rentals, operates from a prominent site in Henderson Valley Road, and also has branches in Mt Wellington, Takapuna and Hamilton supplying a wide range of trucks, vans, mini-buses, and 4WD’s. The Henderson rentals fleet numbers around 500 vehicles used by contracting and construction companies, the film industry, courier companies, furniture and house shifting, general cartage, and by schools, sports and social clubs and families for short or long-term use.

For more than two decades under owner Owen Mills and managing director Kevin Jackson it has gained a growing reputation for providing an array of support and designated vehicles to the New Zealand film and television industry with the film studio where much of Xena-Warrior Princess, Hercules and other productions were made, located next door. Mr Powell says Hirepool, through a number of its branches is “also very much involved with the film industry in the supply of access equipment, generators and Port-a-loos”. It is a great New Zealand export success story and one we are keen to continue to support.”

As with Power Plant Supplies, Hirepool is keen to take the Henderson Rentals brand nationwide and create a new specialist truck and commercial vehicle rental division.

The purchase of Henderson Rentals brings to 65 the total number of business units now under the control of Hirepool which itself was acquired last July by Australian private equity investor, Next Capital, for $172 million, with Mr Powell retaining a 20% stake in the business.

In the past six months Next Capital has supported Powell in his aggressive growth strategy, concentrating on “vertical markets which all have a close synergy with our core equipment rental business with the Henderson Rental deal bringing our total investment in that period to more than $40m.”
This includes the purchase of Port-A-Loo Christchurch, Davies Hire in Mt Albert, Power Plant Supplies Ltd, opening a new Hirepool branch in Whangarei, taking over the lease of a new site in Penrose to house Nationwide Equipment and now Henderson Rentals, which Mr Powell rates “as key to creating a truly national distribution network with a number of vertically aligned and complimentary businesses.”

When he took a stake in Hirepool back in July 2003 it had 14 branches, with only one in the South Island. He embarked on ‘Phase One’ of an aggressive strategy to take Hirepool nationwide which was achieved inside of three years. By July 2006 it had established 52 business units, including 14 in the South Island.

“So after creating a national network,” says Mr Powell, “the second phase involved creating separate vertical businesses, managed as specialist divisions, which compliment our core equipment rental activity. This is now well established with the Access and Scaffolding Division, the Portable Sanitation Division (Port-A-Loo), The Equipment Distribution Division (Nationwide Equipment Ltd and Power Plant Supplies Ltd ), the Energy Division (Hirepool Energy) and the now the Commercial Vehicle Rental Division (Henderson Rentals).

Mr Powell says that, “all the companies acquired in ‘Phase Two’ had strong relationships with existing Hirepool customers and under the Hirepool brand we could offer a broader range of products and services to this customer base.”

All Henderson Rentals staff have been employed by Hirepool and will remain with Henderson Rentals.

ENDS

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