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High profile businessman Tenby Powell's equipment hire enterprise New Zealand Rental Group has sold off its retail businesses.
Powell said yesterday the retail distribution companies, Nationwide Equipment and Power Plant Supplies, have been sold for an undisclosed sum by way of a management buyout (MBO) to David Lee, the group's retail division general manager.
Powell said the move would enable the group to focus on its core rental business - a strategy that had been signalled in July when it changed its name from Rakino Group. At the time, the divestment was expected to fetch around $10 million.
Powell also stepped down as head of rental equipment provider Hirepool at the same time, but stayed on with New Zealand Rental Group - Hirepool's holding company - as its group chief executive with the aim of expanding the group's presence in Australia.
The group now spans more than 80 general and specialist equipment rental business units nationally, including 28 in the South Island.
It now comprises cornerstone business Hirepool, together with the specialist divisions such as generator and pump business Hirepool Energy, sanitation business Port-A-Loo, and events hire company Castles Marquee.
Powell expects to announce another acquisition before year's end.
"David brought the idea of an MBO to us after a number of parties had expressed interest in the retail division. We see this as the ideal solution," Powell said.
Lee has more than 20 years' industry experience, and took the Takeuchi excavator brand to a market-leading position in New Zealand.
