09.08.2013
Snorkel moves closer to sale
Tanfield has said that it is giving a potential buyer a short period of exclusivity in order for it to complete its due diligence.
No details have been given other than the following statement:
“The board is pleased to report that sufficient progress has been made on the structure and broad terms of an acceptable proposal for the sale of its powered access division, to grant the preferred potential purchaser a short period of exclusivity in which to complete its due diligence with a view to mutually form a contract that will be executable subject only to shareholder approval.”
Vertikal Comment
It has been very clear this week that something was close, first of all rumours emerged that Don Ahern of Ahern Rentals in Las Vegas was close to buying the Snorkel business- although it was not possible to firmly confirm or dismiss these, and then the share price started to climb - both indications that something was afoot.
Tanfield can not of course make any comment, given that its shares are publicly traded, but it does sound as though it is at least talking seriously with someone.
Watch this space.
MT
Good advice from, Confused!
Hoogi
As well as Ahern Rentals, Don Ahern also owns Xtreme Manufacturing www.xmfg.com which makes a range of telehandlers. Snorkel don't make telehandlers, Xtreme don't make platforms - and the two ranges would complement each other very nicely. Ahern Rentals has Snorkel machines in its hire fleet, so is very familiar with how they perform. If Ahern really is the likely buyer of Snorkel, it sounds to me like a very sensible arrangement, and I imagine Ahern would be acquiring Snorkel at a significantly lower price than Tanfield Group paid for it. Before buying Snorkel, Tanfield already owned UpRight, which they subsequently merged with the Snorkel brand, so Ahern would be getting both.
I really hope they do a thorough job of this due dilligence for their own sakes. Lift the carpets lads and check the wardrobes. Leave no stone unturned!!