The transaction is subject to the satisfactory completion of various closing conditions and adjustments and is expected to close on or about July 31 2007.

The transaction covers 188 Hewden trading locations. Approximately half of these locations are serviced through depots located on properties owned by Hewden and the balance are located in leased premises. The purchase price excludes the owned properties which have an estimated market value of approximately £25-30m. Finning expects to dispose of these holdings in an orderly fashion. Following the sale of the tool hire business, Hewden will have 102 remaining locations which will focus on the plant hire (equipment rental) business and related complementary rental equipment.

“Narrowing Hewden’s business lines will allow us to focus our financial and management resources on those areas most closely associated with our Caterpillar equipment related core strengths,” said Doug Whitehead, Finning president and CEO. He continued: “This transaction is the second significant sale of a portion of our UK operations in the last year. Finning remains committed to the UK market with our remaining business lines both at Hewden and at our Caterpillar dealership operation.”

&#8220Hewden will be reducing staff numbers in the back office areas of the business”

Finning will continue to have a total of 128 locations and approximately 3,400 employees in the UK.

Finning UK Group managing director Andy Fraser said: “Hewden remains the UK’s number one plant hire (construction equipment rental) company. We intend to build on our core strategy of providing customers with instant availability of a comprehensive range of high quality plant, supported by the best customer service offering in the industry.”

Brian Sherlock responded: “The sale of the tools sector will signal changes in the organisational structure of the business as it becomes a leaner, more market focussed structure.”


Hewden will be reducing staff numbers in the back office areas of the business