HireQuip completes turnaround looks to bright future

New Zealand’s leader in equipment rental, HireQuip, has more than doubled its trading profit (EBITDA) since the bottom of the Global Financial Crisis (“GFC”) construction slowdown growing at an annual compound growth rate of 39%.

Tasman Capital Partners Managing Director and HireQuip director, Rob Nichols, said that in March 2012 HireQuip’s LTM trading profit exceeded NZ$20 million for the first time in 3 years.

“As the GFC dawned and demand plummeted HireQuip implemented a comprehensive business improvement plan to fortify itself against the recession,” Mr Nichols said. “This plan was implemented in order to survive the recession, lift customer satisfaction and position HireQuip for long term growth.”

This strategy included branch consolidation, overhead reductions, strengthened sales presence, investment in hire fleet and transport capability.

“Key to HireQuip’s operational and financial turnaround has been honest communication with HireQuip’s key stakeholders, customers, staff , suppliers and financiers,” Mr Nichols said.

HireQuip CEO, Brian Stephen, said: “By working closely with our staff and suppliers we delivered on the commitment to provide ‘best in class’ hire equipment, service, and tangible value to customers.

Mr Stephen commented: “Special mention should also be made of our landlords whom stepped up when asked to support HireQuip.

“Through our close relationship with equipment suppliers we remained market leaders by continually reinvesting in our fleet to a level that ensures we provide customers with quality equipment every time,” he said. 

Mr Stephen notes: “Loyalty is big at HireQuip. During the tough times HireQuip staff repeatedly went the extra mile to ensure customer expectations were consistently met and regularly exceeded.

“This dedication has been well regarded by customers whom have increasingly turned to HireQuip as their partner of choice. HireQuip has enjoyed significant market share gains as a result of its staff’s efforts.

Mr Nichols added: “It is important to mention that, without the support of our bank through one of NZ’s bleakest periods, many of HireQuip’s staff would have lost their jobs which could have been catastrophic for their families and local communities.”

“Having ridden out the recession we are entering an exciting growth phase, we were pleased to open a new branch last month at Dyers Rd in Christchurch. This is the first new HireQuip branch opened since 2006,” Mr Stephen said.

“With construction activity forecast to accelerate, acquisitions are back on HireQuip’s agenda,” Mr Nichols said. “HireQuip is well positioned to acquire competitors whom have struggled in a contracting market. We will expand our product range in high demand niches.”

About HireQuip:

Established in 1956 HireQuip is New Zealand’s leading provider of equipment rental services.  HireQuip has 34 branches across New Zealand and over 300 staff. HireQuip Group is owned by HireQuip management and Tasman Capital Partners (NZ) Limited. HireQuip has an estimated 21% share of the New Zealand equipment rental market. 

About Tasman Capital Partners:

Tasman is a private equity firm focused on investing in mid sized companies in both New Zealand and Australia.  The team has delivered a realised 32% IRR on turnaround, buy-out and buy & build transactions over the past 12 years. Previous investments led by the team include: FleetPartners, Tempo Services, Loscam, Pacific Nursing Solutions (PNS), Bledisloe Group, Wizard and Pacific Apparel Solutions.  The team received AVCAL best deal awards in 2005 (Loscam) and 2006 (PNS).