Onsite Rental Group plans to acquire Western Australian equipment hire business GCS Hire – the equipment hire division of Global Construction Services.
The acquisition, which is subject to several conditions, is expected to be completed in the next three months.
Onsite chief executive officer Mike Foureur described the acquisition of GCS, which supplies plant and equipment to the resources and other industries, as transformational.
He said it would significantly broaden Onsite’s customer base and enhance its asset profile, “giving us considerable flexibility to better serve our customers from our national platform”.
“This follows the recapitalisation of Onsite announced earlier this month, which enables us to further invest in our fleet, provide an expanded suite of products to service customers’ needs and to pursue growth opportunities,” Foureur said.
“There are strong synergies between the two businesses. GCS hire’s customer base is complementary to Onsite’s and its fleet is closely aligned to Onsite’s.
“This provides us with enhanced capabilities in terms of fleet to bid on contracts with our strong national footprint. It also bolsters the depth and strength of our fleet to be redeployed into the significant demand being seen in the east coast and other markets.”
GCS group managing director Enzo Gullotti said the company considered various offers and proposals regarding potential new business opportunities, joint ventures and asset sales “from time to time.”
“It considers all such proposals in the best interests of its shareholders, employees and clients,” Gullotti said.
“Today’s announcement on the conditional sale agreement provides another opportunity to support market consolidation in the equipment hire industry and deliver on the company’s strategic objectives to optimise our existing portfolio of businesses and enhance value creation for our shareholders.”