British aerial equipment rental specialist Lavendon Group last week said it acquired one powered access rental and equipment firm and agreed to buy two others in deals totaling €87.8 million (about $128.8 million).
Lavendon has bought DK Rental Spain for €24.2 million, and has agreed to buy DK Rental Belgium and DK Rental France for €63.6 million, about €41.9 million of that in cash. Lavendon said it will pay €56.5 million of the entire deal in cash, and about €12.6 million in loan notes. It will also issue about 1.9 million new ordinary shares in the company, which it expects will begin trading on the London Stock Exchange Dec. 17.
Lavendon chief executive Kevin Appleton said with the operational leverage from combining the businesses, the company will deliver improved returns from France, Belgium and Spain. The company said it will retain the experienced DK Rental management team. The combined DK Rental businesses has a fleet of about 2,700 units with an average age of two years. It has seven main branches in the three countries.
Lavendon said the combined DK rental businesses reported revenue of about €31.3 million, with EBIT of €11.2 million for full-year 2006.
The U.K.’s largest aerial rental company, Lavendon is based in Lutterworth, Leicestershire, England.