HSS sells UK hire business for £1 and strikes online deal with Speedy

HSS Hire Group itself will make a seller contribution of £26 million to facilitate the deal.

It is selling THSC to Project Mansell Newco Limited, a newly formed company indirectly owned by investment funds managed by private equipty firm Endless LLP.

HSS said the move was part of its transition away from its asset-intensive hire operations to is capital-light, digital marketplace ProService.

As part of its strategy, ProService has entered into a new five-year commercial arrangement with Speedy Hire and Speedy Asset Services (AS).

Speedy AS will become the main equipment supplier to ProService, replacing HSS The Hire Service Company.

Meanwhile, HSS will be renamed ProService Building Services Marketplace. The transaction will also result in Speedy Hire owning 9.99% of the enlarged share capital of the renamed group.

There is also an option for Speedy to extend its arrangement with ProService for another three years.

Around 100 employees will transfer from Speedy AS to ProService, while 300 employees will transfer from THSC to Speedy AS.

Speedy will assume property lease liabilities related to a number of THSC distribution centres.

Steve Ashmore, executive chairman of ProService said, “This transformational agreement with Speedy Hire marks a major milestone in scaling our marketplace business. The commercial agreement enables ProService to focus solely on its growing, asset-light marketplace model, unlocking significant value for our shareholders and customers. With increased scale and breadth, the business is now well positioned for profitable growth.”

The deal comes as HSS unveiled its selayed financial accounts for the 15-month period to 31 March 2025. The business made a pre-tax loss of £130.1 million on revenue of £379 million.

The group said it delivered a “solid performance” as it continues to navigate a “challenging market environment” as it focuses on splitting the business into two distinct operations.