02.12.2003

Agreement in sight for Meek

It looks as though discussions with a number of potential suitors are heading towards a conclusion at the troubled aerial platform rental company, The Meek Group PLC.

In November, a receiver was called in to help rescue the ailing company and it now looks certain that a trade buyer will take over the business, further consolidating the UK powered access rental market.

The Meek Group was subject to a £21 million management buy-in back in 1999 when founder, David Meek, decided that the time was right to sell up and move offshore. He had himself exeperienced difficulties in the early 90's when an administrator was appointed and debts rescehduled but managed to save the comany from bankuptcy. After the buy-in, the relatively high leverage and falling rental rates of 2000 to 2002 took their toll causing the current problems.

When the company’s difficulties became public, rumours began to circulate that Meek himself was looking to buy the business back at a discount. This chatter has abated in the past few weeks but nothing is ever certain in this industry. Further news from Meek can be expected by mid December.

The market conditions since 2000 have caused problems for a number of companies in the sector. In 2003, PAS and Elevation have either appointed receivers and/or had a significant portion of their rental fleets repossessed, while another company,
UK-Platforms continues to trade under difficult conditions. A number of units from its fleet have been moved elsewhere by Haulotte, their primary backer, which for the moment, is continuing its support. (See interview with Pierre Saubot Vertikal.Net and Cranes&Access Nov 03).

It is thought within industry circles that Haulotte will either force a take over of the UK-Platforms business, thus extending its rental activities to the UK, following its acquisition of LEV earlier this year, or pressure the company into a merger or sale to a larger player in the market.

With all this activity it looks as though the UK powered access market will have gone through a relatively significant shake out in the second half of 2003, of which the Meek development is but a part.

This "consolidation” will certainly brighten the prospects in 2004 for other mid-sized and major rental companies that have significant access fleets, such as Lavendon, Hewden, A-plant, Loxam, AFI, Independent and others. It is also bound to strengthen the upward trend in rental rates (see 2003 Hire Rates Survey, Cranes & Access, Nov 03) that most companies are already reporting in the UK.