North American telehandler manufacturer Xtreme Manufacturing announced it has signed an agreement for the staged acquisition of Snorkel from its UK owner, finalizing the transaction. Xtreme has acquired an initial 51 percent stake in a new company, Snorkel International Holdings from the Tanfield Group, and will contribute up to $50 million for working capital purposes and other considerations.
Tanfield, meanwhile, has acquired 49 percent in exchange for contributing substantially all of the assets of its Snorkel business division.
“Snorkel was founded in the U.S.A. and has a long, proud history in America,” said Don Ahern, owner of Xtreme Manufacturing and Ahern Rentals. “This is a strong brand, with an excellent product range and superb global distribution capabilities, making it a great fit with Xtreme. With the right strategic investment, Snorkel will regain its rightful position as a major player in the aerial lift market. We have a large number of Snorkel products in our own rental fleet at Ahern Rentals, as do many other independent rental companies. It is my desire to provide world-class aftermarket support and restore Snorkel’s leadership in product development. Snorkel is an esteemed brand, which has, throughout its long history, often been the standard of the industry.”
Xtreme is a Nevada-based manufacturer of high-quality telehandlers, known as rough-terrain forklifts, widely used for lifting materials in the construction, mining, energy and agricultural sectors. The agreement will enable Xtreme to make its full range of products and services available outside of the U.S., in some cases marketed under the Snorkel brand.
Ahern Rentals is one of the largest companies in the U.S. equipment rental market and a long-time customer of Snorkel. Ahern Rentals plans to offer direct sales of Snorkel machines and replacement parts as well as service and repair of Snorkel products from its 75 rental centers in 23 U.S. states.
Stockholders in the Tanfield Group voted overwhelmingly in favor of the deal with Xtreme. Under the agreement, all three of Tanfield’s executive officers will join the board of Snorkel International Holdings, stepping down from Tanfield’s board of directors.
“Don Ahern has a proven track record in the lifting equipment industry,” said Jon Pither, chairman of Tanfield Group plc. “I have every confidence that with the help and support of the Snorkel management team, he will deliver a bright future for Snorkel.”