23.11.2007

AFI takes Central Access

AFI-UpLift, one of the UK's top three access rental companies, has acquired Central Access the Newstead, Nottingham based powered access rental and training specialist.

Central Access was founded in 1998 and is owned by Gary and Helen Fearon it is also a member of the UK’s Access Link, a national group of independently owned access rental companies.
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Nick Higgins of AFI-UpLift (L) congratulates Gary Fearon of Central Access

The company runs a fleet of around 140 aerial lifts and is an IPAF operator training centre and one of the few training companies approved to carry out Competent Assessed Person (CAP) training leading to the issue of a CAP card.

Fearon has signed a consultancy agreement with AFI and will remain with the business, at least in the short term. The location will be retained and initially continue as a separate operation although the business will be merged into AFI.

AFI corporate development director Nick Selley said: “This acquisition will significantly strengthen our operations in the East Midlands and, as a result, will further boost our national depot network, which now has over 4,300 machines. Once again, it demonstrates how we are able to move quickly and decisively when opportunities arise to expand our business.”

The deal was completed on Wednesday no details have been released on the value of the transaction.

AFI-UpLift is head to head with The Platform Company, when it comes to fleet size, with both companies now running between 4,100 and 4,300 aerial lifts. Nationwide Access is the clear market leader with well over 7,000 units.

Vertikal Comment

This is the second acquisition of an Access Link member by AFI in five weeks, it purchased North East Access in mid October. AFI was a founder member of The Link, but left the association when its national aspirations became a conflict with those of other Link members.

With both Lavendon and AFI buying up small, well run, local access rental companies, it would seem that a market consolidation is in progress in the UK. However A good number of new companies have entered the market this year, while some of the smaller operators have significantly grown their fleets.

Overall most local users probably have a greater choice of aerial lift rental supplier now than they ever had. There is also no shortage of companies offering a full range national service.

What these acquisitions have done though is to increase the market share of some of the better operators, when it comes to rental rate discipline and sound financial management, not to mention safety measures, and general good practice. It has also allowed the larger companies to add to their fleets without adding to overall market capacity.

All in all these acquisitions are good for UK access rental industry, providing openings and opportunities for smaller competitors while creating a nice exit strategy pipeline for those that run a quality business.

The greatest irritant has to be to the Access Link whose members are a constant target for the acquirers, however given that membership appears to be a route to being bought out, perhaps The Link will find more good new candidates knocking at its door?