20.02.2004

Haulotte on the Move

French Aerial lift producer, Haulotte has been the centre of intense speculation this week fueled largely by the release on Wednesday evening of the Terex results for 2003, which showed a substantial improvement in its Genie Aerials division and positive statements on the aerial lift market for 2004.

The statement, interpreted as a buying signal by many French fund managers was followed by a buy recommendation on Friday from ING and positive statements by Pierre Saubot, President of Pinguely Haulotte. In an interview with a French based financial newsletter he said that he “sees the first signs of a pick up in the market”, although qualifies that “it is too soon to interpret its strength and durability”, however he goes on to say that "the worst is definitely behind us”

He repeated an earlier statement made to Vertikal.Net, that Haulotte’s management was ready to look at any opportunities that might come along, just as they did with the Lev purchase last year.

In the UK a number of sources have confirmed that on Friday Haulotte finally made a move on UK Platforms, the access rental company, funded by Haulotte, that has run into debt repayment difficulties, leaving Haulotte with residual exposure.
The reports, yet to be confirmed by Haulotte, say that two of the three partners have departed the company, while one has remained on board to work with Haulotte.

No announcement has been made by Haulotte on this subject, so it is too early to say what they plan to do with UK Platforms, options include a full take over along the lines of the LEV Acquisition or it is entirely possible that they might look to facilitate a sale to another rental company.

UK Platforms was set up around three years ago by Steve Rodgers and Shane Smith, who had previously worked as managers for PTP, (now Loxam Access) and then moved to join Tony Dearie at the ill fated Ainscough Access division: It was the exit of Ainscough from the powered access business that instigated the establishment of UK platforms, underwritten by Haulotte.

Smith and Rodgers were later joined by an old PTP colleague, Tim South, who became financial director. The new company, supported by Haulotte, expanded rapidly but had a reputation for cutting rates to uncommercial levels in order to build volume, the fast pace of expansion to over 1,300 units also caused considerable logistical problems in terms of; service, repairs and deliveries etc.. Low rates combined with high leverage and start up costs along with an all out UK price war in 2000/2001, soon created problems for the new company which finally resulted in yesterdays action.

It is understood that all three Director/Owners were offered a position with the business following Haulotte’s “intervention” but that only one of the three have accepted.

Vertikal Comment

The UK access rental industry has been looking to Haulotte to take action against UK platforms for almost a year now, following rumours of a default on loan repayments guaranteed by Haulotte.
The association with UK platforms has considerably hampered Haulottes ability to sell product to other rental companies, at one point UK platforms represented the vast majority of the companies sales in the UK.

The arrival of Pierrick Lourdain, just over 12 months ago, to head up Haulotte UK, resulted in a moratorium on the supply of lifts to UK Platforms. Haulotte has since then made significant progress in penetrating other fleets, with many middle sized UK rental companies, such as Panther, AFI, Kimberly and New venture Access Rentals Ltd placing significant orders for the company’s machines.

The key question now is: Does Haulotte intend to become a UK rental company for the long term OR will they simply look for a short-term stewardship while they find a buyer?

Either way the UK and Irish platform rental market will today be applauding the fact that some action has now been taken.