Next-backed Hirepool in talks to buy Tasman Capital-owned HireQuip - report

According to the Australian Financial Review, the acquisition by Hirepool would allow Tasman to pay off most of the A$115 million ($117 million) loan HireQuip is due to repay Westpac Bank this year. Receiver Korda Mentha was appointed to the company in July after it rejected refinancing offers.

The deal would need to be approved by the Commerce Commission because, if merged, the two hire companies would hold a combined market share of 40%.

HireQuip, which hires out equipment such as excavators, was taken private by Tasman in 2006. The company got into difficulties due to the subdued market appetite in New Zealand following the financial crisis. Its performance improved to some extent recently, however, with its current EBITDA standing at A$21 million, an A$11 million increase on the figure for 2010.

Tasman Capital focuses on turnaround and restructuring deals and management buyouts in Australia and New Zealand. It primarily targets small- and medium-sized companies - typically with enterprise values below A$100 million - but also considers deals that involve de-listing publicly traded firms.

Tasman was formed in 2008, following the management buyout of Nikko Principal Investment Australia, an investment unit of Japanese brokerage Nikko Securities.

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