Speedy expands into Kazakhstan

Denholm has been working in the region for 20 years and since 1999 has operated its business there through Denholm Zholdas (DZ). The joint venture will trade and operate under the brand Speedy Zholdas in Kazakhstan. Zholdas is the Kazakh word for friendship.

Both Speedy and Denholm have identified the opportunity to leverage DZ's existing infrastructure by providing a full range of asset management and equipment rental services in support of existing clients of DZ.

Given the seasonal nature of its activities, the joint venture is expected to breakeven during the 2014 financial year and to be earnings-enhancing in the following year and beyond.

As part of the transaction, Speedy has acquired a 50% interest in DZ's existing equipment rental operation for a total cash consideration of US$4.4m (£2.8m).

Speedy's CEO Steve Corcoran said: "We are delighted to be accessing the exciting oil and gas market in the Caspian by working in partnership with such a well-established and highly-regarded partner. Denholm has an enviable reputation, built up over 20 years, for providing outstanding levels of service to major international oilfield clients in Kazakhstan. Having recently supported Denholm Zholdas on planned turnaround projects in the region from our existing business, this joint venture is a natural next step for both parties.”

John Denholm, J & J Denholm's chairman and CEO, said: "We are delighted to be bringing Speedy in as a partner in our Kazakh plant hire business and believe their expertise and access to equipment will enable us to improve the level and range of service that we can offer our customers."

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