Hercules Site Services (LON:HERC) has taken a bold step forward in its growth journey by successfully completing the divestment of its Suction Excavators business. This strategic move, first announced in January, marks a significant milestone as the company sharpens its focus on high-growth opportunities within its core Labour Supply and Civils Projects businesses.
A More Focused and Profitable Hercules
With the divestment now complete, Hercules emerges as a leaner, more agile business poised for long-term expansion. The company sold the Suction Excavators unit to SNC Holdings (NW) Limited for a total cash consideration of £2.4 million. The transaction substantially reduces net debt and lease liabilities by approximately £9 million, providing Hercules with greater financial flexibility to pursue its ambitious growth strategy.
James Tetley, analyst at Equity Development, highlights the impact of this transaction, stating, “The result is a more focused group with high growth characteristics, a cash generative business model, and a strong balance sheet. Hercules now has greater firepower to execute its ambitious organic and acquisitive growth strategy.”
