Finning acquire Hewden Stuart
CATERPILLAR dealers Finning have made a significant move into the plant hire sector with the acquisition of Hewden Stuart for £322 million in cash. Finning say the acquisition, which has been made with the full support of Caterpillar, represents a major step in their strategy of international expansion and diversification.
Hewden Stuart, one of the UK's leading hire companies, offer general plant hire, crane hire, powered access equipment hire and tool hire, and employ more than 4,000 staff in 370 locations. The acquisition is expected to generate operating and distribution synergies, and it is anticipated that the deal will be accretive to Finning's earnings in the first financial year.
Commenting on the offer, Doug Whitehead, chief executive officer of Finning, noted: 'Through Finning's long-established UK presence, we know that customers require a variety of distribution channels to meet all their needs. This acquisition will combine Finning's international equipment sales business and Hewden Stuart's leading UK plant hire business to allow us to provide more comprehensive services to a wider customer base through both channels.'
Sir John Robb, chairman of Hewden Stuart, added: 'Customers and employees will benefit from access to the extensive resources and international backing Finning will bring to Hewden Stuart.'
It is Finning's intention that Hewden Stuart will retain their own identity and branding.