13.11.2007

Lavendon takes DK Rental

The Lavendon Group, Europe’s largest powered access company, has agreed the acquisition of DK rental the Belgian based access rental company along with its operations in Spain and France.

The company has paid €87.8 million (£61.4 million) for all three businesses, comprising €56.5 million (£39.5 million) in cash - €12.6 million (£8.8 million) in loan notes and the issue of 1,902,372 new ordinary shares in Lavendon, representing 4.3 per cent. of its enlarged share capital

DK will, continue to trade under its own name, at least in the short term, but will begin working with Lavendon's existing businesses in France, Spain and Germany immediately.

DK is largely owned by DK’s founder Dirk Naessens, the company's chief executive, he said, “ I am very pleased that we have been able to take DK Rental into the Lavendon Group family. I see this as a move that can only have a positive impact for both the staff and customers of DK Rental”

DK Rental's key managers, including Ivan Papell in Spain and Naessens himself are all expected to remain with the business.

The DK Rental has a fleet of around 2,700 machines in total with an average age of two years, operating from seven main depots. Last years revenues totalled €31.3 million with Earnings Before Interest and Tax of €11.2 million.

The acquisition of DK Rental Spain, which cost €14.6 million (£10.2 million) in cash, €3.6 million (£2.5 million) in loan notes and the issue of 608,123 new ordinary shares has already completed.

The takeover of the Belgian and French businesses are contingent on approval by Lavendon shareholders. An Extraordinary General Meeting will be called shortly to approve the deal.

Lavendon chief executive, Kevin Appleton said, “We are delighted to welcome the DK Rental team into the Lavendon Group. DK Rental has a tremendous reputation for service, has an extremely strong equipment sales business and covers a number of complementary geographies. It makes a great fit with our existing business.”


Vertikal Comment

This is a big acquisition even my Lavendon’s standards, it gives the group market leadership in Belgium and takes it to a totally new level in Spain. Particularly in Catalonia.

DK’s operation in France is its most recent venture but will help add market share to Lavendon’s weakest operation, this will be particulary true in the Paris area, one of Zooom France's weaker reagions and where DK has built up a fleet of almost 400 units which will compliment Zoooms fleet of a similar size operating from locations.

The stronger position in Spain and market leadership in Belgium will also provide a major boost to the groups ability to grow in France and is likely to transform that business over the next two years.

In total the acquisition will take the groups overall revenues to well over €200 million next year, making it one of the largest rental companies in Europe.

Its combined fleet of over 21,000 units also cements its position as by far and away the largest powered access company in Europe, with clear market leadership in Germany, Belgium and the UK, not to mention the Middle East.

The young DK fleet will also have a measurable impact on reducing the average age of the overall Lavendon group fleet.

DK also has a thriving alloy scaffold tower rental fleet and access sales activity, it will be interesting to see if Lavendon retains this, activity, allows it to lapse or builds on it.