U.K.-based aerial rental specialist Lavendon Group last week acquired competitor EPL Access for £1.3 million (about U.S. $2.2 million) in cash. EPL Access recently entered administration, the U.K. equivalent of Chapter 11 bankruptcy protection.
EPL is based in Lutterworth, U.K., and generated revenue of £8.1 million (about U.S. $13.4 million) and an operating profit of £500,000 for the year ended Sept. 30, according to U.K. press reports. In 2008, Lavendon reported a 34-percent increase in revenue to £248.4 million (U.S. $412 million), while pre-tax profits increased 31 percent to £30.4 million.
The deal will be funded from Lavendon’s existing bank facilities. The company will take on about £2.8 million of EPL’s debt.
Lavendon will take over seven EPL locations and 320 aerial units for rental.
“This acquisition strengthens our U.K. market position in vehicle-mounted access platforms,” said Lavendon chief executive Kevin Appleton. “Through elimination of overlaps with our existing business, we anticipate a rapid return on our investment following completion of an integration program, which will generate annualized savings of £1.5 million before the end of this year, at a one-off cost of around £0.5 million. Whilst our focus on cash generation and debt reduction remains very much in place, given our scale and operational efficiency, we can absorb acquisition opportunities such as this on very attractive terms in the current environment.”
Lavendon is based in Leicestershire, U.K.