27/09/2017 - 11:32

GCS sells hire business

27/09/2017 - 11:32

Bookmark

Upgrade your subscription to use this feature.

Global Construction Services has entered into an agreement for the sale of its equipment hire division to Onsite Rental Group for an undisclosed sum.

GCS sells hire business

Global Construction Services has entered into an agreement for the sale of its equipment hire division to Onsite Rental Group for an undisclosed sum.

The Perth-based construction services business told the market today it would sell its GCS Hire division, which operates several branches across WA, to Onsite, with the deal expected to close within three months.

GCS Hire’s services include the provision of site accommodation, temporary fencing, tools and equipment.

The buyer, Onsite, is a Sydney-based equipment hire company that targets clients in the mining, oil and gas, construction, industrial and government sectors.

It employs about 400 personnel across 31 branches, 10 of which are located in WA.

“The board of GCS considers various offers and proposals regarding potential new business opportunities, joint ventures and asset sales from time to time,” GCS managing director Enzo Gullotti said.

“It considers all such proposals in the best interest of its shareholders, employees and clients.

“Today’s announcement on the conditional sale agreement provides another opportunity to support market consolidation in the equipment hire industry and deliver on the company’s strategic objectives to optimise our existing portfolio of businesses and enhance value creation for our shareholders.”

GCS has been expanding its operations on the east coast through acquisitions. In April, it paid about $18 million for construction services business Summit Formwork.

Shares in GCS were 3.5 per cent higher to 72.5 cents each at 11:30am.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options