Key business buy-up in TIP expansion plan
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• Tip Europe has bought Key Leasing, the Cheshirebased leasing and used truck and trailer sales firm, in a deal worth up to £10 million.
The deal will add 1,850 trailers and 800 trucks to the TIP fleet as well as a head office in Cheadle and a sales depot in 'rrafford Park, Manchester.
TIP is paying an initial £5 million, with another £5 million depending on profit levels over the next two years. Key Leasing founders Ray Hill and Tim Fox will remain with TIP.
Jim Cleary, chairman of TIP Europe, says Key Leasing will continue to operate as an independent unit, offering its services in the UK and Europe through the trailer rental firm's 40 European outlets. It will also continue to attack the local authority market which it entered three months ago.
TIP hopes to extend this municipal leasing operation onto the Continent.
Key Leasing made a pre-tax profit of 2697,000 in the year to 28 February on sales of almost 26.3 million.
0 TIP is talking to several agencies in a bid to extend its trailer rental operations into Eastern Europe.