HSS Hire has completed a deal to sell its hire operations to private equity firm Endless LLP, marking a pivot toward a digital-first/asset-light business model.
The transaction, valued at a nominal £1, includes a £26 million payment from HSS to fund the separation and restructuring of the loss-making unit, which reported a £130 million pre-tax loss for the 15 months to March 2025.
The deal transfers around 130 depots, including 39 physical branches and 65 builders’ merchants, to Endless. The private equity investor’s portfolio includes well-known brands such as Crown Paints and Hovis. However, Endless will not acquire HSS’s distribution centres, which will continue to operate under the ProService division.
The sale marks the culmination of a multi-year restructuring strategy that has seen HSS divest its power and Irish businesses. The company will now rebrand as ‘ProService Building Services Marketplace plc,’ focusing exclusively on its digital marketplace model, which connects contractors to tools, materials and training via its proprietary “Brenda” platform.
Coinciding with the sale, HSS has entered a £35 million strategic partnership with Speedy Hire. Under the agreement, Speedy becomes the principal equipment supplier to the ProService marketplace for at least five years, with an option to extend to eight. The arrangement allows Speedy to acquire approximately £35 million in hire assets, including depot leases, and take a 9.99% equity stake in the newly named ProService group.
In total, around 300 HSS employees will transfer to Speedy, while approximately 100 Speedy staff will move to ProService to manage rehire and resale operations.
Executive Chairman Steve Ashmore described the deal as a major inflection point for the company: “This transformational agreement with Speedy Hire marks a major milestone in scaling our marketplace business. It allows us to focus solely on our asset-light model, unlocking significant value for shareholders and customers. With increased scale and breadth, the business is now well positioned for profitable growth.”
Speedy Hire Chief Executive Dan Evans echoed the optimism: “This is a transformational agreement for Speedy, made possible by the progress of the group under our Velocity growth strategy. It will provide Speedy customers with greater choice and an enhanced service, while providing ProService customers the ability to indirectly access our national network, larger equipment fleet and faster delivery capability,” he said.
The agreement is expected to generate between £50 million and £55 million in annual revenue for Speedy while improving operating margins for both companies. For HSS, the partnership replaces internal supply from its own hire division with a more efficient procurement model, enhancing profitability and scalability.
According to the Construction Index, HSS ProService Limited accounted for £290 million of the group’s £349 million revenue in 2023, with the proportion expected to grow further once the restructuring is complete.
HSS’s latest results show turnover increased to £379 million from £312 million, primarily due to the longer reporting period. However, like-for-like sales fell 5% to £298 million, impacted by the loss of the Amey contract and weaker market conditions.
Completion of all transactions is expected by 31 December 2025, pending shareholder and Competition and Markets Authority (CMA) approval.
