19.07.2007

Trans Tasman

Hirepool, the New Zealand based rental company that was acquired by Next Capital last July, has become the first New Zealand rental company to have a presence on both sides of the Tasman, following its acquisition of On Site Australia Group.

Last July, Auckland private equity firm Next Capital purchased Hirepool for NZ$172million and earlier this week it took a 60% stake in On Site Australia to create a national hire group.

Hirepool managing director Tenby Powell, who retained a 20 percent share when Hirepool was taken over by Next, has also taken a similar share in On Site Australia and has become a director of the new group.
See Hirepool sold
“This latest acquisition now clearly provides Hirepool with a strong Trans-Tasman footprint, which is of real value to our large client base and offers exciting development opportunities for staff,” said Powell.

On Site Group founder, Malcolm Williams said “There is a tremendous opportunity to develop additional products for our existing customer base by leveraging their Hirepool relationships, as well as further greenfield and acquisition opportunities.”

Valued at A$109million, On Site Australia was established in Sydney in 1999 and has grown to 17 locations across New South Wales, Queensland, Victoria and West Australia. Its products include accommodation huts, portable toilets and access towers.

Next Capital is quoted as saying that it intends to hold its investment for three to five years before seeking a sale or flotation. In the meantime it is looking to “participate in the consolidation of the equipment rental sector, using On Site Australia as the platform for a roll-up play in equipment hire”

John White of Next Captial said: “On Site Group represents an excellent strategic fit with our existing Hirepool business, which has already delivered double digit earnings growth since it was acquired. We anticipate significant efficiencies being unlocked as the businesses operate as one in coming years,”