The Commerce Commission has cleared the owner of Hirepool, Bligh Finance Ltd, to buy Hire Equipment Group Ltd (Hirequip).
Chairman Mark Berry says the commission considered that, in the hire of building construction and maintenance equipment, the merged entity would be constrained in each sub-regional market by the presence of existing competitors, low barriers to entry of the market, and/or the countervailing power of large customers.
The commission did not find any significant business overlap between Hirepool & Hirequip in the hire of heavy construction and earthworks equipment.
Bligh Finance applied in October for clearance to acquire up to 100% of the shares and/or assets of Hirequip. Hirepool and Hirequip are rental businesses that primarily hire out general construction and building equipment. They also hire out other more specialist items, including vehicles, marquees and event equipment, portable toilets and portable buildings.
Bligh Finance is 72% owned by Hunter Powell Investments Ltd (Sharon Hunter & Tenby Powell) through NZ Rental Group Ltd. Goldman Sachs JB Were Managed Funds Ltd, as responsible entity for the Collateral Mezzanine Fund 05, is listed as a small shareholder in NZ Rental Group.
Michael Stiassny and Brendon Gibson (KordaMentha Ltd) were appointed receivers of Hire Equipment Group and two related companies, Pacific Equipment Solutions Ltd and PES Finance Ltd, in July 2012.
Sydney-based director Rob Nichols co-founded the parent of all the New Zealand companies, Tasman Capital Partners (NZ) Ltd, in 2008 following the management buyout of Nikko Principal Investments Australia. He specialises in turning companies around and leveraged buyouts and has led or co-led 12 private equity deals.
