Close Brothers Corporate Finance advised the directors of Brandon Hire, the nationwide operator of 143 tool hire and lifting equipment hire branches, on the sale of the company to Wolseley plc, the specialist trade distributor of plumbing and heating products and building materials. Brandon Hire was acquired by Wolseley for £72 million at a price of 212p per share, which represented a premium of 50% over the average closing price per Brandon Hire share for the three months prior to the commencement of the offer period.
Brandon Hire operates a national network of 143 tool hire and lifting equipment hire branches across mainland Britain under the Brandon Tool Hire and Brandon Loadtite banners. The company supplies an extensive range of equipment for hire to a broad customer base and also sells related equipment and accessories. For the year ending 31 December 2005, the company generated sales of £57.1 million and operating profit before intangible asset amortisation of £6.4 million.
Commenting on the transaction and Close Brothers' role, John Laycock, Chairman of Brandon Hire, said:
"This transaction represents excellent value to shareholders. The advice provided by Close Brothers and their conduct of the process was first rate and their assistance helped to secure an exceptional offer level for Brandon Hire."
David Bezem, Director of Close Brothers Corporate Finance, commented:
“Brandon Hire is a UK company that has grown from a regional business into a nationwide operator with an excellent track record of profitable growth. The premium paid by Woseley for the business is a credit to Brandon Hire’s directors and employees and what they have achieved."