Perthshire plant hire giant Morris Leslie has made a multi-million pound acquisition of an English rival.
The West Kinfauns firm has acquired the plant hire division of Selwood – adding five depots and 2,000 machines.
The transaction, for an undisclosed sum, will also see 70 staff transfer to Morris Leslie.
The new premises are in Birmingham, Bournemouth, Bristol, Exeter and Southampton.
Morris Leslie moved quickly on plant hire opportunity
Group operations director Graham Ogilvie is delighted to make the deal.
He said: “The opportunity came up in the middle of July so we’ve been able to complete the deal quite quickly.
“It very much complements our business and gives us an expanded UK area map.”
Of the 2,000 assets acquired, around 1,300 are big single items, taking the firm’s fleet to 4,500.
Although the initial investment is significant, many more millions will follow.
The Morris Leslie model is to buy new machines, hire for a short amount of time and then re-sell around the world.
“It’s not just the initial deal it’s the reinvestment that will come on the back of that,” Mr Ogilvie added.
“Historically their assets have run longer than Morris Leslie and we will replace them.
“Selwood customers will have the new modern plant hire fleet with the same people and service with new equipment.”
Morris Leslie returns to profit
The announcement comes as Morris Leslie publish new financial accounts which show a return to profit.
In the year to April 30 2021, the firm made a pre-tax profit of £2.6m compared to a £4.6m loss as Covid impacted the business in 2020. Turnover dipped by £1m to £58.7m.
As well as plant hire and plant sales, Morris Leslie has auction and property interests.
Mr Ogilvie said it took some months for the construction side of the business to recover but it had been buoyant since the end of July.
“There has been more confidence, more projects across the construction and housing markets,” he said.
“Demand is outstripping supply which is holding prices for used equipment.
“The challenge we have is getting new equipment. That’s been tougher but we still spent £25m last year. This year we’ve ordered 2,000 machines at a cost of more than £60m.”
Morris Leslie plans for hotel resort
Morris Leslie is said it aims to make a full planning application for a proposed £34m leisure hub in West Kinfauns this month.
It is hoping to create a four-star hotel, lodge-style cabins, transport museum and retail space.
It projects it will welcome 80,000 visitors a year and support 170 hospitality, retail and leisure jobs.
“The plans have been well received. It’s job creation, tourism, bringing people to Perth and locally it will add infrastructure,” Mr Ogilvie said.
“We are also entering the luxury lodge market with Morris Leslie Villages, with our first site under construction.”