Finning acquires Hydraquip Hose & Hydraulics Ltd.

VANCOUVER — Finning International Inc. announced the acquisition of Hydraquip Hose & Hydraulics Ltd. and Hoses Direct Ltd. for approximately £65 million, net of cash acquired, subject to normal post-closing adjustments and before deferred contingent consideration.

Hydraquip is a hydraulic hose replacement and repair company with a record of profitable growth. Hydraquip has 270 employees nation-wide serving more than 4,000 customers across a diverse range of industries, including construction, power systems, transportation, waste management, utilities, manufacturing, and materials handling.

In 2021, Hydraquip generated over £26 million in revenue and £7.2 million in Adjusted EBITDA. Approximately 60% of Hydraquip’s revenue comes from on-site mobile hose services, including hose replacement, assembly and fitting, oil replenishment, and general hydraulic servicing. Hydraquip operates 130 mobile service vans with trained technicians providing 24/7 coverage across the UK. The remaining 40% of Hydraquip’s business is focused on selling hydraulic and fluid power products and parts via a network of 27 branches and online.

“This acquisition is closely aligned with our strategy to drive product support growth, providing complementary products and services that help customers maximize uptime and reduce operating costs. Hydraquip expands our service capabilities across multiple industries and equipment types to both new and existing customers. We see a very strong customer focus and cultural match with the Hydraquip team and are excited to welcome them to Finning,” said Scott Thomson, president and CEO of Finning.

The transaction is being funded from cash on hand and existing credit facilities and will be immediately accretive to our UK & Ireland operation’s EBIT as a percentage of net revenue, as well as our overall earnings per share and free cash flow.