Commercial law firm Hill Dickinson has advised Hercules Site Services plc, a leading technology enabled labour supply group for the UK infrastructure and construction sectors, on the disposal of its suction excavator business to SNC Holdings (NW) Limited.
Suction Excavators, which accounted for 88% of Hercules’ borrowings but less than 5% of its revenue in the company’s financial statements for the year ended 30 September 2024, was sold to SNC for £2.4 million, reducing Hercules’ debt and lease liabilities by approximately £9 million with immediate effect.
Hercules will use the expected increase in free cash flow to support its ongoing acquisition strategy while capitalising on high-growth opportunities available to its core labour supply business as the UK carries out a series of substantial construction and infrastructure upgrades within the nuclear, power and energy distribution, aviation, water, and rail sectors.
Corporate partner Jonathan Morris advised Hercules on the disposal, assisted by Danielle Higgins, associate in the firm’s Corporate Commercial team and Martha Morrow, a paralegal in the same team.
Jonathan Morris said: “Hill Dickinson has acted as legal adviser to Hercules since 2022, working closely with the management team to guide it through the admission of its shares to the LSE’s AIM Market, and a subsequent fundraise and acquisition. Disposing of the suction excavator business at this point tidies up Hercules’s balance sheet and makes the overall business more attractive to investors. We are delighted to have worked on this deal with the internal deal team and also Steve Bartlett at Transcend, who acted as Hercules’s corporate finance adviser on the deal.”
Brusk Korkmaz, CEO of Hercules, added: “This is a hugely positive development for Hercules and we are grateful for the assistance that Jonathan and his team at Hill Dickinson provided at each stage of the process.”
