Helphire Group plc, a provider of replacement vehicles to road accident victims, has strengthened its business after buying one of its taxi sub-contractors.

Helphire Group plc, a provider of replacement vehicles to road accident victims, has strengthened its business after buying one of its taxi sub-contractors.

The London Stock Exchange-listed group has bought Cab Aid, a provider of replacement vehicles to the taxi market.

The deal could be worth as much as £5.2 million and will be settled in cash funded by HBOS and Royal Bank of Scotland.

The terms of the deal include some £4 million paid on completion, with the balance due depending on the performance of the acquired business in the 12 months following completion.

Helphire was founded in 1992 to help motorists involved in accidents where they were not to blame.

The Bath-based company has a nationwide network of branches operating a fleet of some 17,000 vehicles, from scooters and motorbikes to prestige marques and commercial vans.

Cab Aid offers a range of licensed vehicles, including hackney carriages, private hire, wheelchair accessible and multi-seater models. It also provides full claims management, including vehicle repair, loss of earnings and PI claims handling.

The Surrey company, which has depots in Sutton and Manchester, employs some 80 staff and operates a fleet of 300 vehicles. In the year to January 2007, the company reported a pre-tax profit of £1.1 million from a £6 million turnover.