5 January 2010
Speedy Hire Plc
MIDDLE EAST STRATEGIC SERVICES AGREEMENT
Speedy Hire ("Speedy") is pleased to announce that it has signed a five year Strategic Services Agreement with Al Futtaim Carillion ("AFC"), Carillion plc's long standing joint venture in the Middle East and North Africa with the Al-Futtaim Group. The entering into of a formal agreement follows on from the announcement of the signing of the Memorandum of Understanding between Speedy and AFC in July 2009.
Under the terms of the Strategic Services Agreement, Speedy will, in addition to becoming AFC's exclusive provider of light plant and equipment across the Middle East and North Africa, provide a full range of asset management and logistical services using its new and innovative IT and business process platforms. Under a separate agreement signed with AFC, Speedy has acquired certain light plant and other assets from AFC for a cash consideration of £4.1 million which, together with existing equipment transferred from the UK and investment in new equipment, takes Speedy's overall investment to support AFC's specific requirements to some
£8.5 million.
In addition to supporting a number of long-term AFC projects in the UAE, under the terms of the Strategic Services Agreement, Speedy will in due course extend its support to other projects in the region.
Formal completion of the above arrangements, which is subject to Speedy finalising the establishment of its local trading entity and obtaining relevant local trading licences, is expected to take place later this month.
The Agreement with AFC means that Speedy's International Asset Services Division is on track to deliver exit run rate turnover as at March 2010 of in excess of £10 million in line with previous guidance.
Steve Corcoran, Speedy's CEO, said:
"We are delighted to announce this further development of our strategic relationship with Carillion. This underlines the long term value of our strategy of deepening our relationships with leading international contractors and industrial clients and highlights Speedy's rapid progress in becoming an international services business"
John McDonough, Carillion's CEO, said:
"Building long-term relationships with our key suppliers is important to our ability to deliver increasingly efficient, high-quality services for our customers. We look forward to working with Speedy in the Middle East and to building on the strong relationship we have already developed with Speedy in the UK."
Contacts
For further information please contact:
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Speedy Hire Plc |
Tel: +44(0) 1942 720 000 |
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Steven Corcoran, Chief Executive |
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Justin Read, Group Finance Director |
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Hudson Sandler Nick Lyon / Wendy Baker / Kate Hough |
Tel: +44(0) 207 796 4133 |
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