Hirequip after a slice of the action

Hirequip New Zealand said today it was considering the possible sale of its equipment hire business.

Acting chairman Ray Polson said the review had gained momentum following the sale of 51 per cent of rival Hirepool to private equity firm Next Capital for $172 million.

"While we are some way off reaching any conclusions, one outcome could see the sale of the company's equipment hire businesses," Mr Polson said.

"There is considerable interest in the equipment hire sector and a growing appreciation of the value of businesses with strong earnings and growth potential.

"We need to ensure that Hirequip is well placed to take advantage of that interest."

Hirequip shares rose 6 cents, 5.5 per cent, to $1.15 on the news. They have traded between 78c and $1.17 in the last year.

Hirequip, founded in Dunedin in 1954, operates from 55 branches nationwide and employs more than 500 staff.

It has the country's largest inventory of general hire equipment and operates a party and events division in the South Island, as well as specialist generator supplier Power Hire.

- NZPA