HSS Hire Group will sell its UK hire business, HSS The Hire Service Company (THSC), to a private equity company for £1.

HSS Hire Group will make a seller contribution of £26m to facilitate the deal, as reported by Construction Briefing.

The company has branches at Selco in Cheltenham and Kellaway in Stonehouse.

HSS THSC is being sold to Project Mansell Newco Ltd, a new company indirectly owned by investment funds managed by private equity firm Endless LLP.

HSS said the deal was part of a move away from its asset-intensive hire operations to is capital-light digital marketplace, ProService.

ProService has entered into a new five-year arrangement with Speedy Hire and Speedy Asset Services (AS). Speedy AS will become the main equipment supplier to ProService - replacing HSS THSC.

HSS will be renamed ProService Building Services Marketplace. And Speedy Hire will own 9.99% of the enlarged share capital of the renamed group.

Around 100 staff will transfer from Speedy AS to ProService and 300 employees will move from THSC to Speedy AS.

HSS made a pre-tax loss of £130.1m on revenue of £379m for the 15 months to March 31.