Ryder Europe has announced that it has completed the purchase of 100% of the equity in nationwide truck rental and contract hire company Hill Hire from Lloyds Banking Group. The cash transaction values Hill Hire at £154 million. The purchase was agreed by both parties based on the strength of the Ryder bid and the significant complementary benefits of bringing the two businesses together.
All of Hill Hire’s assets comprising 13 depots located throughout the UK, approximately 4,000 HGVs, and other equipment including a large trailer fleet for rental and contract hire, will transfer to Ryder; as will the company’s UK workforce of around 300 staff and technicians.
David Hunt, vice president and managing director Ryder Europe, said: “Hill Hire is a well respected and successful business. The completion of this acquisition supports our continuing growth strategy cementing Ryder’s position as one of the UK’s leading independent HGV truck rental and contract hire providers.”
Under the combined business, Ryder will now operate a fleet of over 10,000 HGVs and will serve the rental, contract hire and maintenance needs of over 5,000 customers.
Robert Sanchez, president of Global Fleet Management Solutions for Ryder System Inc, said:
“We are pleased to make this investment to better serve the UK market. There are tremendous benefits in bringing the two companies together. Hill Hire’s vehicle fleet, which comprises 60% tractors, complements Ryder’s existing UK fleet which is largely rigid based. It will enable us to provide improved choice and value for customers with additional payload and vehicle specification options that further strengthen the Ryder product range.
“Hill Hire’s UK depot network will enhance the geographic reach of our business, and its solid base of contractual blue chip customers strengthens our position in a range of key markets.”
Hunt concluded: “The transition to operating as one UK business now begins. Throughout this process, we will be focussed on achieving the optimum business structure that best serves our customers. With that in mind, the goal of the initial integration process will be working closely with customers and suppliers to help ensure that high service levels continue without disruption.”
The purchase of Hill Hire follows Ryder’s investment of around £44 million in new vehicles over the past two years. It continues Ryder’s long term growth strategy for the UK, strengthening the company’s position in the HGV rental, contract hire and maintenance market.