2 April 2025

HSS Hire Group plc

Sale of HSS Hire Ireland Limited

HSS Hire Group plc ("HSS" or the "Company") announces that Grafton Group plc has agreed to acquire the entire issued share capital of HSS Hire Ireland Limited ("HSS Hire Ireland") for a total gross consideration¹ of c.€31.6m (c.£26.2m), representing a transaction multiple of c.6.9x multiple of EBITA². The Disposal is subject to competition clearance in Ireland.

HSS Hire Ireland forms part of the Company's Operations division and specialises in tool and equipment hire across the Republic of Ireland. The Disposal follows the formal separation of the Company's ProService and Operations business, now called The Hire Service Company ("THSC"), in September 2024 to better unlock the value in each business and provide the Board with additional optionality to maximise future value for shareholders. The Disposal will allow the Company to continue to focus on driving the long-term performance of these two standalone businesses, with the proceeds of the Disposal used to strengthen its balance sheet.

Following the Disposal, THSC will comprise the Company's tool and equipment hire and related services in the UK, which provides a one-stop shop for all equipment through a combination of its complementary rental and re-hire business to a diverse, predominantly B2B customer base serving a range of end markets. For the year ended 28 December 2024, HSS Hire Ireland had unaudited revenues of €31.9m (£27.0m) and unaudited EBITA of €4.6m (£3.9m). As at 28 December 2024, HSS Hire Ireland had net assets of €17.8m (£14.8m).

Steve Ashmore, Executive Chair, HSS ProService and Director, HSS Hire Group plc said:

"This transaction realises an attractive valuation for our shareholders and is a reflection of our continued strategic progress towards creating a more focused business with two distinct divisions well positioned to deliver enhanced returns when UK construction improves.

"I would like to thank Michael Killeen, CEO of HSS Hire Ireland, and his team for their dedication over many years. We are delighted that as new owners Grafton Group plc will continue to support the growth of the business and wish them every success."

¹ Gross consideration is stated after adding back IFRS16 liabilities and is subject to customary adjustments which will be set out in completion accounts with net cash proceeds based on gross consideration adjusted for cash, debt and debt-like items including IFRS16 liabilities

² Unaudited underlying EBITA for the year ended 28 December 2024

A further announcement will be made following finalisation of the completion accounts.

-Ends-

For further information, please contact:

Inside Information: this announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service, this inside information is now considered to be in the public domain.

The person responsible for arranging its release on behalf of HSS Hire Group plc is Daniel Joll, Company Secretary.

Notes to editors

HSS Hire Group plc operates through two separate but complementary businesses serving predominantly business customers:

·       HSS ProService ("Pro") is the leading Digital marketplace business focussed on customer and supplier acquisition. Technology driven, scalable and uniquely differentiated. Wide range of building services, including hire, resale, materials, training and more

·       The Hire Services Company ("THSC") formerly known as HSS Operations, provides tool and equipment hire and related services in the UK through a nationwide network of Group companies and third-party suppliers. It offers a one-stop shop for all equipment through a combination of its complementary rental and re-hire business to a diverse, predominantly B2B customer base serving a range of end markets and activities.

·       HSS is listed on the AIM Market of the London Stock Exchange. For more information, please see www.hsshiregroup.com.