Shares in HSS Hire Group PLC (AIM:HSS) climbed 9% on Wednesday after the company agreed to sell its Irish business to Grafton Group PLC (ISE:GFTU) for €31.6 million (£26.2 million).
HSS Hire Ireland, which specialises in tool and equipment rental across the Republic of Ireland, will change hands at a multiple of around 6.9 times its 2024 earnings, subject to regulatory clearance.
The unit generated revenues of €31.9 million last year and had net assets of €17.8 million.
The deal is part of a broader restructuring that began last September when HSS formally split its UK and Irish operations.
The UK side now trades as The Hire Service Company (THSC).
Proceeds from the sale will be used to bolster HSS’s balance sheet and help focus efforts on growing the UK business, which serves a wide range of business customers through rental and re-hire services.
The stock rose 0.54p to 6.78p.