Tanfield Group Plc, the U.K.-based owner of aerial work platform manufacturer Snorkel, has been fielding offers from potential buyers for the Snorkel business.
“The company has received a number of approaches from credible parties who have expressed interest in making a strategic acquisition of our global aerial work platform business division in order to enter this recovering market,” Tanfield officials said in a statement. “The board is considering these approaches and will provide an update in due course. Any disposal of this business would be subject to shareholder approval. There can be no certainty that any negotiations will result in an agreement to dispose of this business.”
The statement was made along with its most recent trading statement prior to the quiet period before announcing results for the financial year, which Tanfield expects to announce in April. Revenues for the Snorkel business in the third quarter grew month on month, the company said, and a break-even revenue level was achieved in October 2012, the first such month since 2008.
The company took steps during the fourth quarter to maintain its position to respond to improving opportunities in 2013, with the need to restock the key markets of Australia and Japan, along with a focus on inventory management to minimize working capital. Overall revenues and operating losses for the second half were in line with those in the first half. The resulting inventory profile has put the company into a strong position to respond to the 2013 buying season beginning in the second quarter.
Tanfield said end markets continue to recover on the back of replacement demand and the company has received significant order forecasts from key customers, supporting a positive outlook for 2013. The board expects to achieve its first full-year profit since 2007.
Tanfield Group plc is based in Washington Tyne & Wear, U.K., with U.S. headquarters in Elwood, Kan.