Speedy acquires Lifterz
UK general rental company Speedy has acquired powered access rental company Lifterz in a deal that values the company at £21.5 million.
Yorkshire based Lifterz is owned and managed by the Bowers family and has a fleet of around 1,300 aerial work platforms operating from four locations - Ossett, Haydock, Daventry and Bathgate - with 90 employees. Revenues for the year to the end of January were £15.2 million with an EBITDA of £3.3 million. Gross assets are £17.2 million.
Speedy is paying £9.6 million in cash and assuming £11.9 million of debt, which it paid on completion. The Bowers will remain on board to manage the business, with Malcolm Bowers taking a part time role.
A statement from Speedy said: “The acquisition complements Speedy's previous powered access acquisitions creating a comprehensive national presence which will allow the company to service customers nationally with larger specialist equipment.”
“The group expects to benefit from revenue synergies through the provision of a national offering to major customers from its owned fleet of equipment. Cost synergies will be realised from the operation of a national powered access business through Speedy's national depot network.”
This is the third powered access specialist that Speedy has acquired since November 2017 having previously acquired Yeovil based Prolift Access and Platform Sales & Hire of Milton Keynes. See Speedy acquired Prolift and PS&H
. The addition of Lifterz will take the Speedy aerial lift fleet to around 7,500 units and possibly make it the second largest aerial lift rental company in the UK, marginally ahead of AFI.
This looks like a good move for the Bowers family, and if I am not mistaken the third time that Malcolm Bowers has built an access rental business from nothing and then sold out. AFI was his last creation.
For Speedy it makes it a very serious contender in the aerial lift rental market, with three very good companies that have been well managed with strong fleets. It also put its well ahead of its main general rental competitor A-Plant which has had aims of becoming one of the leading players in the platform rental market. It also enhances its specialist geographic coverage, given that Lifterz is strong in the North while Prolift is strong in the South west and PS&H strong in the South and South East.
It looks as though it has paid a brave price for the business but it could be well worth it as long as it manages the acquired business well and does not over ‘corporatise’ it.
Possibly a win win deal.