06.05.2010

Kimberly acquires 1st Access Rentals

UK access and telehandler rental company Kimberly Group has acquired the entire share capital of 1st Access Rentals, including its subsidiary Scotia Plant & Tool Hire and Pinnacle Platforms with their bases in Glasgow and Preston.

The acquired businesses will continue to operate autonomously within the Kimberly Group and under the management of Stephen (Stevie) Connelly who was the sole shareholder of 1st Access Rentals.

Geraldine Unsworth - managing director of Kimberly Access, David Foster – group financial director and Kimberly chairman Ray Ledger will join the board of directors of both acquired companies.

Commenting on the deal Ledger said: “This is the first step in our publicly stated strategy to grow the Kimberly Group by the acquisition of powered access rental businesses with strong maintainable brands in order to achieve national coverage.”

“This was an excellent opportunity to add very profitable and well run businesses to the Group and with the depth of experience and enthusiasm of a strong team enables us to grow the operations in both Scotland and the North West”

Kimberly is the UK and Ireland’s 10th largest powered access company according to Cranes & Access’ 2009 top 30 rental companies. The 1st Access fleet along with Kimberly’s additions since the survey will take the fleet of the combined business’s to around 2,200 units and into eighth place, moving ahead of Loxam Access and A-Plant.

Kimberly was the subject of a Management Buy Out led by Ledger in 2007 and is owned by him and the management team along with MBO partner Lloyds TSB Development Capital (LDC). No details of the purchase price have been disclosed.

Vertikal Comment

This acquisition has been an open secret in the industry for several months as the two parties carefully negotiated the deal and completed a thorough due-diligence process. This is a major deal and whilst we do not have the latest full year revenue numbers for the acquirer or acquiree, it is likely that the deal will boost total Kimberly group revenues by at least 50 percent.

Ist Access Rentals has grown rapidly since it was incorporated at the end of 2003 and in recent years has been one of the more profitable companies in the powered access business, with revenues to the end of March 2009 of £7.4 million and pre tax profits of £1.15 million.

Connelly has been the subject of some controversy in recent years, due to his association with a development company – Glen Isla – that was wound up in late 2007 and has been the subject if a number of sensational newspaper articles. As a reulst he has been the subject of attempt to disbar him from serving as a company director, against which he has appealed. He remains a director of the companies with which he is involved.

Ledger is a seasoned deal maker and has known Connelly for many years, having worked closely with him in the past and knows his strengths and any weaknesses. He told Vertikal.Net that he is looking forward to working with him again as they continue to grow the business, building on what Connelly has achieved so far. As he says “the numbers and company’s reputation speak for themselves.”

Kimberly ran a substantial advertising campaign announcing its plans to acquire regional access companies, as part of its strategy to build its share of the UK market. This is likely to be the first of a number of deals this year.