16.10.2013

Snorkel deal concluded

Tanfield has completed the transfer of its all of its Snorkel business to Don Ahern

Snorkel is now part of a Nevada based business along with Xtreme Manufacturing. Don Ahern owns 51 percent of the new business while Tanfield, now a publicly owned investment business, retains a 49 percent stake, which it hopes to convert into cash sometime in the next five years.

Ahern said: “Snorkel was founded in the USA and has a long, proud history in America. This is a strong brand, with an excellent product range and superb global distribution capabilities, making it a great fit with Xtreme. With the right strategic investment, Snorkel will regain its rightful position as a major player in the aerial lift market.”

“We have a large number of Snorkel products in our own rental fleet at Ahern Rentals, as do many other independent rental companies. It is my desire to provide world-class aftermarket support and restore Snorkel’s leadership in product development. Snorkel is an esteemed brand which has, throughout its long history, often been the standard of the industry.”

Vertikal Comment

While the paperwork has been completed the job to save Snorkel has only just begun and is bound to take some time before any results begin to show. In fact major surgery is almost certainly required before any thoughts of recovery can begin. Otherwise Don Ahern’s cash injection will be blown within the year.

The first step will be to decide on a realistic strategy for the future the cash required to be a global full line manufacturer with annual revenues of under $100 million even $200 million is a great deal more than Ahern’s $35 to $50 million. He will need a good deal of that to provide a first class product parts / product support service.

The challenge proved to be too great for other potential buyers, but Ahern is both a risk taker and a fighter and has a good nose for a deal. As his long - and successful - battle to retain ownership of Ahern Rentals demonstrates, he is capable of winning against all the odds. Which is just what Snorkel needs now.