21.06.2006

Lavendon snaps up A.M.P

The Lavendon Group plc, Europe's largest powered access rental company and owner of Nationwide, Panther and Kestrel in the UK has acquired A.M.P Access Ltd, the Taunton based access company.

AMP has a fleet of 525 units, four locations, in Taunton, Liskeard, Gloucester and Poole, a location it acquired From Newlins. and 57 staff.

Revenues through 31 August 2005 were £4.8 million with a pre tax profit of £1 million. It has gross assets of £6.3 million and net assets of £2.6 million. Revenues for the past 12 months are up to £4.9 million with a pre tax profit of £600,000.

Lavendon has paid £3 million in cash for the business with an extra £300,000 to £2.6 million in cash available dependent on AMP’s performance over the next two years.

In addition Lavendon will take over AMP’s net debt of £2.8 million.

The majority of the shares in AMP are held by chairman Mike
Boyle and is family, while Paul Onslow owns 20 percent and Andy Pearson two percent.

AMP split into two companies in July 2005, with Paul Onslow taking the non powered business into A.M.P Access Solutions, which is owned jointly by Boyle and Onslow. At the same time Andy Pearson took over as MD of A.M.P Access. see AMP demerge we understand that AMP access solutions is not included or involved in the acquisition.

Lavendon's chief executive, Kevin Appleton commented: "AMP has an excellent reputation and holds a strong position in the South West with a number of its customers showing significant growth potential.

Following on from our earlier acquisitions of Panther and Kestrel, the complementary geographic coverage of AMP is an important addition to our new network of regional businesses.

AMP's management team will remain with the business and will seek to ensure that their customers benefit from the breadth and depth of fleet and the administrative support of the largest powered access company in Europe."
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Mike Boyle (L) and Paul Onslow

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Andy Pearson (L) and Mike Boyle with a new CTE 20E truck mount

AMP is yet another member of the Access Link to be taken out by Lavendon. Panther had been the driving force within the Link but resigned after becoming part of Lavendon.

Mike Boyle and AMP had taken over the reigns at the Link and one now assumes will depart the organistion at the next meeting?.

Vertikal Comment

While this is a surprise it is not a surprise, Lavendon had said that it had further acquisitions in the pipeline after it took over Kestrel. AMP gives the group first class coverage in the South west of England, always a tough market to cover well.

AMP has an excellent fleet which includes both self propelled and truck mounted lifts.

This is hardly likely to be the last target on Lavendon’s list it seems that any well managed powered access company is fair game.

The Access Link was and is a collection of better companies within the UK powered access business and has provided its members customers with a quality national coverage on a par with the “national” players. Lavendon’s buying spree is likely to have a devastating effect on the effective national coverage that the Link offers.

This is most likely a side effect of Lavendon’s buying spree and not its main strategy?

Lavendon might soon approach a position in the UK where its market share starts to raise interest of the regulators. Although even with AMP we would estimate that Lavendon’s share of the UK powered access market is still well under 25 percent in unit and revenue terms.