03.07.2017
AFI and Kimberly
We understand that talks and negotiations between AFI and Kimberly are close to reaching a conclusion.
Employees were informed of the discussions last week, a deal in which AFI would acquire the ongoing business and assets of Kimberly and merge the operation into AFI Uplift.
The deal has been prompted by private equity firm LDC which owns a controlling interest and is looking to exit the business after 10 years as an investor. However as of Friday the transacation had not been concluded, and is therefore not yet a done deal.
The move would add a further 1,662 aerial lifts into the AFI Group fleet along with six locations and around 85 employees. There are likely to be some job losses - as the Kimberly fleet is merged into AFI - as back office synergies come into play etc... Kimberly Rentals Group reported revenues of £13.2 million last year, with a pre-tax loss of just over £1 million. The company had a negative net worth.
Kimberly was acquired by LDC – a private equity business owned by Lloyds Bank - and Ray Ledger in 2007, the business was founded 13 years previously by Gary Smith and Peter Piekarus.
See Ray Ledger leads Kimberly MBO
We hope to hear more in the next few days.
UPDATE
The deal was been formally agreed with employees informed this morning - July 18th. Plans for merging the two business will progress over the coming months.
JP666
Looks like some delay in announcing the final deal being agreed.
I'd like to challenge Ray Ledgers comments on Ebitda given the rumours circulating on job losses, shareholders /directors getting sales bonuses (sale of the business) while some who remain & some who have left receive nothing.
Hearing big numbers
Can Ray explain ebitda to them, not that it'll make any difference in the long term.
Are the rumours correct or false?
Clearly we hope that any merger/takeover is beneficial to all staff concerned. A fascinating period in the access industry at present. Loxam, Plantfinder, AFI et al show a significant change in step. What will be the outcome of Speedy and HSS's recent tribulations be? Personal opinion; strong regional players will strengthen their positions with a fleet of Hybrid energy machines capable of multiple applications. Larger players will keep absorbing any perceived weaknesses and increasing their coverage. An interesting period ahead; fleet mix and strategic planning will be very very important. FUN TIMES!!!!!!
paul-richards43
Both sides of the argument are, to some extent, correct but as Sir Owen Green (recently departed former head of the BTR conglomerate) once famously said " There is no other single index that captures the success of a company like the bottom line".
Only LDC will be able to comment on whether they feel their decade in control has been a success, but only when the deal is finalised - and it ain't over till it's over - and the details are announced, will anyone be in a position to give an opinion.
AFI is a quality business and an experienced acquirer, and a deal may well prove to be to the significant benefit of Kimberly employees - and, given the continuing deterioration in trading results, the alternative may be considerably less palatable.
JP666
Good deal for AFI but potentially not so good for Kimberly staff
The staff turnover at Kimberly has been high And may just get higher on the back of this deal.
Lot of good hardworking staff been let down at the final hurdle.
Hope those receiving sale bonuses enjoy them.
Lots of losers but still some winners(as always)
I hope and wish that those less fortunate in this deal can move on and find new positions.
Big Booms
The Private Equity company understood it enough
vertikal editor
Given that behind this deal are real people's lives and jobs, those commenting might just be a little sensitive to what they write and think twice about the wording of any comments until a final deal is announced.
Ray Ledger
Another one who doesn't understand private equity financing.
It's a pity that these people can't use their name, such is the courage of their conviction.
Big Booms
really Ray, you reckon that a ebitda score is more important than net worth?
Ray Ledger
Before making stupid comments perhaps The Realist should take some basic lessons in to how private equity backed businesses are financed.Clearly he/she does not understand that such businesses are loaded with bank debt,thus carrying high levels of interest so the pretax number is irrelevant.
All such businesses are judged and indeed valued based on ebitda. if he/she does not understand ebitda they should contact me and I will explain.
Made a cock up of that then!