Forklift News - FINNING IN US$465M HEWDEN STUART TAKEOVER

VANCOUVER, Canada -- Finning International Inc, which sells, rents, finances and services Caterpillar equipment in Canada, Britain and Chile, has completed a US$465 million acquisition of Hewden Stuart plc, a United Kingdom equipment rental company.

While the deal was signed late last November, Finning only acquired control of Hewden on January 26, through the purchase of 95.7% of Hewden's shares at 115 pence per share. Finning (UK) Ltd is the national Caterpillar dealer for Britain, serving England, Scotland and Wales.

For the year ending January 2000, Hewden had revenues of UK (pounds) 256 million and pre-tax profits of UK (pounds) 40.5 million.

Finning says the acquisition, which includes 370 locations in Scotland, England, Wales and Northern Ireland, with more than 4300 employees, makes it the UK's largest rentals company.

Finning president and chief executive officer Doug Whitehead said: "Hewden Stuart's strong national network, its excellent employees, its modern fleet and its recognised brand name will enable us to achieve solid growth and create superior shareholder value."

He said 2000 was a successful, eventful year. "We made major progress on many of our initiatives and strategically repositioned the company for future success."

The Hewden Stuart acquisition comes on top of two take-overs by Finning in 1997. In May 1997, Finning's Canadian arm acquired Interior Lift Truck, headquartered in Kelowna, British Columbia. The company sells, rents and services materials handling equipment from Kelowna and branches in Vernon and Penticton.

In October 1997, Finning (UK) acquired H Leverton Ltd, the former Caterpillar dealer for eastern and northern England. H Leverton has been integrated into the Finning (UK) operation.

Hewden Stuart chairman Sir John Robb said the acquisition by Finning was a "major step forward".

"Customers and employees will benefit from access to the extensive resources and international backing Finning will bring to Hewden Stuart."

Discuss Forkliftaction.com News stories in the Discussion Forums!