30.09.2016

Genie acquires PSR

Terex AWP/Genie has acquired PSR, the UK service and repair business of IAPS and will maintain the business as a stand alone operation within the Genie Services Solutions division of Genie UK.

While all 40 or so staff will transfer to Genie UK, they will remain based at the current premises in Telford, alongside the parts operation IPS, although the two operations will occupy different parts of the same building. PSR has 25 mobile service engineers, while Genie UK has a team of six field service engineers. Details of how the two teams will work together will follow as the PSR business is integrated into the Genie Service Solutions operations.

PSR will continue to cover end-user service and inspection contracts and call-outs for all types of aerial work platforms. It will also be responsible for carrying out warranty work for all of the equipment that the IAPS sales arm - APS - sells, largely Genie and Hinowa products, but also Mec, Isoli and Aldercote.

However going forward APS customers will contact a service/warranty adviser at APS who will contract PSR to carry out the work. No details of the transaction have been revealed. IAPS is owned by Jim Daintith and Tony Jennings, with Steve Couling, Kevin Shadbolt and other employees also holding shares in the business.

Matt Skipworth of Genie, who will oversee the day to day transfer of the business said: We are proud to provide our UK customers with an ideal combination of resources in a one stop shop. By responding to the needs of our customers we have further enhanced our ability to provide them with the solutions they require. This in addition will help us win in the marketplace.“

Steve Couling managing director of IAPS added: The Genie UK team is retaining the PSR team's expertise in customer care. This means that existing PSR customers should have complete confidence that they are in safe hands.”
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Vertikal Comment

This is an interesting and slightly unexpected move for both parties, but mostly on the part of Genie/Terex which at one time seemed to want out of the direct sales and service business if it was at all possible.

For IAPS it makes sense in that its two core businesses were always the parts operation of IPS and the sales operation of APS, and they almost certainly make up the bulk of the group’s revenues and margins. It could also go some way to making a future exit of the majority shareholders a little easier?

The fact that Genie has decided to retain the PSR branding and operating location makes good sense, in that the business covers a wide range of equipment, some of it competitive to Genie. It also helps keep the service business at arms length, making it easier to operate as a profit centre, rather than just a sales aid. The key to its success though will depend on Terex treating it as such, allowing it to develop its own strategies and make its own decisions that relate to its particular business rather than reflecting what may be going on in the manufacturing business.

To this end it would do well not to do what it usually does of slapping the Terex branding on it at the first opportunity. While competitors that use PSR for support, will not completely forget that it is Genie/Terex owned, there is no need to rub their noses in it for the sake of some corporate identity guidelines, which given the changing face of the business, are probably overdue for a revamp?

With the Demag name returning and the construction and port divisions all but gone, the Terex brand is increasingly becoming a corporate name rather than a product related one. And the group might do well to exploit that?

In summary this could prove to be a very good move for both parties, and is perhaps another sign – following the evidence and atmosphere witnessed at its recent 50th anniversary celebrations and new product launches - that the Genie business is rapidly regaining its mojo and on an upward trajectory.