11.07.2006

Alimak Hek takes over Conrent

Alimak Hek has acquired the rental assets of Conrent the mast climber rental division of Coates Hire Ltd.

Conrent specialises in the rental of mast climbing work platforms and hoists. It operates throughout New South Wales, Victoria, Queensland and South Australia. Conrent represented around two percent of Coates revenues last year and less than two percent of its profits.

The company was founded in 1971 as a service organisation for the maintenance and repair of construction hoists but has since expanded into rental and support for all manner of rack and pinion mast climbers and hoists.

The Conrent fleet is largely made up of Alimak equipment. It has revenues of around A$15 million (£6/$11.2 million) and employs around 50 people.

The deal includes acquisition of the rental inventory, ongoing contracts, open order backlog, workshop related inventory and equipment as well as the Conrent brand and the staff associated with sales, erection and dismantling and service.

The business will be incorporated into Alimak-Hek’s existing operation, Alimak Hek Pty. Limited, headquartered in Melbourne, with the Rental Business based in Sydney.

Alimak Hek in Australia will as of today be organised and managed in Business Areas; Rental, Construction & Industrial sales, and After Sales. The combined business will operate under the Alimak Hek brand.

Coates purchased Conrent from Graham Hadley and Lee Bolling in 1999 and it has operated as a business units within the Coates Hire ever since.

Coates CEO Malcolm Jackman indicated that the
sale is the outcome of an in-depth appraisal of Conrent’s strategic fit with Coates’ other businesses and its long-term growth potential within the Group.

“Within Coates, Conrent’s synergy potential does not extend beyond the fact that it caters to the same customer base as other parts of the business. The specialised equipment and solutions it provides and in particular the project-based type of contracts it offers are quite different from that of general equipment hire and is targeted at what is, within Australia, a market of limited size,” said Jackman .

“Notwithstanding a good performance in FY06, we believe the strategic appeal and long-term growth potential for Conrent, particularly in comparison with our other businesses, is limited. It is more attractive as part of a company that operates as a stand-alone vertical access specialist and can consolidate Conrent within its existing operations” He continued