03.10.2007

MBO at Ainscough

Ainscough Crane Hire, the UK's largest crane rental company, has today announced the sale of the business to the existing management team for £255 million.

The deal is funded by an integrated debt and equity package from Bank of Scotland Integrated Finance.
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(L-R): Colin James of BOSIF, Brendan A inscough, Martin Ainscough, Neil Partridge -Ainscough, James Ainscough, Tony Meeke -PricewaterhouseCoopers

Based in Standish, near Wigan, Ainscough employs 1,000 people, it was founded in 1976 by Gerald Ainscough and has been run by his three of his sons – Martin, James and Brendan - since 1984.

Martin Ainscough, chairman, said: “I’m delighted to be able to give chief executive Neil Partridge and the rest of the management team the opportunity to continue to develop and grow the business with the support of the Bank of Scotland.”

Partridge said: "The buy-out has come at an extremely exciting time for the company, market conditions are buoyant and with the bank behind us we will be able to continue to grow and enhance our market leadership position. The entire management team is remaining in place and we are delighted to be going forward with Bank of Scotland Integrated Finance."

The transaction was structured and arranged for Bank of Scotland Integrated Finance by Colin James with support from Neal Edwards, Daniel Appleton, Chris Hopwood and Donald Fowler.

Colin James, director of Bank of Scotland Integrated Finance in Manchester said:
"Ainscough Crane Hire is a business with a market-leading position and very strong service offering, we are delighted to have been able to back the management team with an Integrated Finance package. This transaction represents an excellent opportunity for us to invest in a company with very strong growth potential supporting the management team in their aspirations to further develop the business. The deal is yet another example of our commitment to the North West's booming deals market and further consolidates our position as the region's leading equity provider to mid-market MBOs."

Vertikal Comment

Rumours of an MBO at Ainscough have been flying around almost since February when the Aisncoughs announced that they were looking at options which included a possible flotation.

The MBO and the Bank of Scotland’s involvement has been one of the worst kept secrets for quite a while, employees are likely to make a sigh of relief at this news which will put paid to the all the discussion about the companies future.

As long as this buy out does not burden the company with too much debt, this is by far the best outcome all round.

The Ainscoughs are able to cash out while the management and employees continue to build what has been a highly successful business. Utilisation at the company has probably never been higher and the long lead time for new cranes limits the risk of competitors spoiling the gradual return of the UK crane hire industry to a solid financial footing with decent rates.

The Ainscoughs have hardly put a foot wrong over the past 15 years as they sailed past their larger competitors gobbling them up as they went. And now it looks as though they have organised an ideal exit strategy.

You cannot but admire and respect what they have achieved.