10.04.2014

Tadano acquires Cranes UK

Tadano has completed the purchase of its UK distributor Cranes UK and changed the name to Tadano UK.

The final paperwork was completed yesterday afternoon, transferring ownership from Joe and Fransie Lyon to Tadano Faun GmbH.

The directors of Tadano UK Ltd will be UK based and include Andrew Plant and Brian Crisp, plus Thomas Schramm - general manager sales & marketing at Tadano Faun, and Stephanie Müller - who joined Tadano-Faun as chief financial officer from automotive supplier Magna last November.
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The deal is concluded - Alexander Knecht of Tadano and Joe Lyon of Cranes UK

All four were were present yesterday to sign the official ownership transfer, and participate in the official hand over, employee announcement and the changing of the external signs on the building. Tadano Faun chief executive and Tadano main board member Alexander Knecht and Tadano Faun vice president Satoru Oyashiki also participated in the transfer.

Lyon began handing over the day to day running of the Cranes UK business as early as mid-2010, in order to spend more time in his native South Africa. The first preliminary discussions with Tadano began around two years ago, with due diligence beginning in September last year - see: Tadano in talks with Cranes UK.
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The new team (L-R) Satoru Oyashiki, Stephanie Müller, Thomas Schramm, Brian Crisp, Andrew Plant and Alexander Knecht

Lyon, 67, founded Cranes UK in late 2001 and built it up to a point where it commands a market share in excess of 25 percent, with further gains likely this year. The company recently won an order from Hewden for 14 new All Terrain cranes, worth £9 million.
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One of Hewden's new 110 tonne Tadano All Terrains ready for delivery

Lyon had considered selling the business back in 2008, but changed his mind after failing to find a suitable buyer and knowing full well that he would struggle to land an acceptable deal in a down market.

In 2013 however as the business completed its third year of increased revenues and moved towards what is likely to be a record year in 2014, the timing was clearly better suited a successful sale and hand over.
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The sign is ready to change following the departure of the current owners

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Fransie and Joe Lyon

Tadano confirmed that no changes in strategy or policy were planned for the UK business, but said that it expects some processes between the two companies may be simplified and speeded up, now that they are part of the same group. The expansion plans for the business will also continue as the operation keeps pace with the growing Tadano crane population in the UK and Ireland - now said to be approaching 500 units.
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The new sign in place over the door

A statement issued last night said: “The UK and Ireland are very important markets for Tadano, and it is our commitment as a manufacturer to ensure support for our products and customer base in the UK and Ireland. Furthermore, the integration of the UK operations into the Tadano network ensures continuation and access to all company resources in order to develop its products and continue to improve support given to customers and users.”
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The Cranes UK/Tadano UK workshop

Customers looking to discuss the company’s plans etc with the UK and German based executives can meet them on the Tadano UK stand at Vertikal Days on May 14th.

Vertikal Comment

Joe Lyon and the team at Cranes UK have done an exceptional job in winning such a big slice of the road-going mobile crane market in what is essentially a direct sale/company store territory. The only other independently owned company to achieve anything similar was Kranlyft in the 1970s and 1980s with Kato truck cranes, prior to the move to All Terrain cranes.

This move is almost certainly the best outcome for all concerned, the Lyons, one assumes exit with a decent reward for their efforts, and the knowledge that they have left the business in good hands. The manufacturer secures a successful team and distribution set up, while the staff have the comfort of having a secure and stable owner with the minimum of disruption.

Tadano has a very good foundation in the UK on which it can build as it expands its All Terrain product range, and initial indications are that it will leave the local team to get on with the job.

In the meantime all of us at Vertikal wish Joe and Fransie Lyon a very healthy, happy and long retirement.