09.11.2006

Lavendon buys Gardemann

Lavendon has purchased Germany’s third largest access rental company, the Gardemann Group for €46 million (£31 million)

The €46 million price tag comprises €32.5 million (£21.8 million) in cash and the issue of 3,380,322 new ordinary shares in Lavendon, which will represent 8.2 percent of the Company's shares.

Of the €32.5 million in cash, €18.5 million (£12.4 million) is payable on completion, while a further €4.5 million (£3.0 million) is payable after 12 months and €9.5 million (£6.4 million) after 24 months

Of the 3,380,322 Shares, 2,750,000 will be issued on completion with the balance being issued on 28 February 2007

Gardemann is Germany's third largest powered access rental
Company, with a fleet of over 1,700 units, a network of 23 depots and around 250 employees.

The business had revenues of €30.6 million for the 12 months to the end of June 2006. with an operating profit of €5.2 million.

The combination of Lavendons existing Zooom business and Gardemann puts Lavendon right out in front as market leader in Germany with over 4,400 units and also creates one of the largest fleets in Europe in its own right.

Lavendon says that while the two companies will look to share as many costs as possible, they will retain their existing brand names and operate independently towards the customers.

Maarten Mijnlieff, currently joint managing director of Gardemann will assume the new role of chief executive of Lavendon’s combined German operations. Dietmar Helmle,managing director of Zooom will continue in that role, reporting to Mijnlieff.

Mijnlieff said, “We have believed for some time that the German access market would benefit substantially from consolidation and were determined to play a role in that process. I am delighted that we have been able to take Gardemann into the Lavendon Group family, as I believe we are ideally positioned to gain a relevant size enabling us to provide our customers with superior service levels.

I am looking forward greatly to the opportunity to lead the Group in Germany through what promises to be a very exciting period in the Group’s development.”

Following the rationalisation of the depot networks, Lavendon expects to be able to make synergy savings of around €3.5 million. Zooom currently operates from 24 locations giving the merged business 47 depots, a similar level to Zooom at its peak.

Kevin Appleton, chief executive of Lavendon said:

"The acquisition of the Gardemann Group will transform our business in Germany and create a position of clear market leadership at a time when activity levels in the German market are improving for the first time since the market downturn.

The strategic and commercial case for combining Zooom and Gardemann is compelling and we look forward to building a strong operating base for future growth."


In view of its size, the Acquisition is conditional upon the approval of Shareholders, which will be sought at an Extraordinary General Meeting of the Company.

Completion is expected in early December.

Lavendon has also said that business for the current group has remained robust and in line with expectations.

In particular, the Zooom Germany has increased its revenues, sufficient to eliminate the three per cent decline reported for the first half of 2006.

Vertikal Comment

This is something of a surprise, Lavendon has been concentrating on its UK operations and for some time appeared keen to pull back from its overseas operations.

The German market has been a major drain on the group for several years now and in spite of an improving market was not set to move into the black until 2007 at the very earliest.

The German rental market is a tough challenge for any foreign owned company, Lavendon had at least started to be seen as part of the scenery, rather than as an incomer. The Gardemann acquisition takes its business to a totally new level.

Two powered access companies have been the pillars of the German access market for more than 20 years, Gardemann is one, Mateco the other.

Gardemann has always been highly respected as a first rate, quality operation. The combined buisness will have a market share in the region of 15 to 20 percent in terms of active fleet.

Gardemann was the subject of management buy-in in 2002 when Maarten Mintleff and Christian van Eeden purchased the buiness from Brambles, that had earlier acquired it from Arnold Gardemann.

The two men had worked for a railway service business that had also been part of the Brambles group. The deal was financed by Deutsche Bank

The busines had “wobbled” a little in subsequent years as the new owners got to grip with it after an uncertain period under Brambles.

However the past year or two has seen the company regain its status in the marketplace and begin to grow again.

This is likely to prove an excellent move for Lavendon and a good move for the Gardemann owners and management team. If all goes according to Plan Lavendon’s German business should make a respectable contribution to the group in 2007, along with the UK and Middle East.

The interest will now shift to France and Spain where the group is still struggling.