Lavendon Group, a high-reach equipment rental specialist based in Lutterworth, Leicestershire, England, last week announced it bought Cambridgeshire-based Rise Hire for £1.1m cash (about U.S. $2.2 million). The acquisition will enter Lavendon into the van-mounted powered access market.
The company said it will pay and additional £450,000 to £650,000 (U.S. $901,539 to $1.3 million) depending on Rise Hire’s performance over the 12-month period to March 31, 2008.
Rise Hire operated a fleet of about 300 van-mounted powered access and forklift trucks reported 2006 year-end revenue of £2.9 million (U.S. $5.8 million). As part of the deal, Lavendon said it will assume Rise Hire’s net debt of £5.6 million (U.S. $11.2 million).
“Rise Hire has an excellent service reputation and operates in a market segment where our U.K. business is under-represented, and where operational disciplines are different,” said Kevin Appleton, Lavendon Group CEO. “We intend for Rise Hire to be the foundation for further investment to develop a market-leading position in this sector.”
Andy Wright, group development director, added, “This acquisition fits extremely well with the group’s strategy for growth and has enabled us to extend our product and service offering, in a market where growing rental demand is fueled by quality of service, customer preference, product availability and stringent safety legislation.”