Speedy Hire, the tool-hire and equipment rental business, has bought LCH Generators for £59m.
LCH is UK-based and hires out temporary power systems.
It will be integrated within Speedy Hire’s existing power generation business and the combined operation will have more than 4000 generators available for hire.
In the year to 30 September 2005, LCH made a £1.9m pre-tax profit on a £21.1m turnover.
To finance the deal Speedy Hire, which is assuming £13.5m of debt, included in the price, has increased its banks facilities to £210m from £150m.
Speedy Hire said that the acquisition was in line with its strategy to become number one or two in all its business sectors.
LCH employs 196 staff from five locations in Glasgow, Wigan, Coventry, London and Portsmouth. It also has an agency agreement in Aberdeen which allows it to service the off-shore market.