02.06.2009

Access Rentals negotiations

KPMG, the administrators of Access Rentals, the UK aerial lift rental company that went entered administration in late May, is in the closing stages of negotiating a sale of the business as a going concern.

We understand that a well known manufacturer/creditor, has been given exclusivity on a buy out deal following the absence of any other 'serious' contender to buy out the business. However the current – or is it previous – owners of the company, led by majority shareholder, Keith Kendall, have not yet given up in their attempt to acquire the business from the administration.

A deal with someone looks fairly close to being struck.

Vertikal Comment

There are a number of people in the industry who would be none too happy if the previous owners of Access Rentals were to succeed in running the business through the administration cycle and exiting with the business almost intact but minus som of its debt load.

The other option, while it may not be what the likely acquirer would prefer, given the choice, is almost certainly the one that the industry as a whole would prefer, regardless of the history behind the rapid growth of the business. It is also likely to be the preferred choice of the majority of the creditors.

The other significant group affected by these moves is of course the employees, who must be looking at these alternatives as the devil they know, who may or may not be able to provide sufficient financial backing over the long term, or the devil they don’t know who might be better funded, but might be looking at trimming the business back to a more practical size or to merging it?

But then trimming the business back to fewer depots may also be a part of the incumbents business plan should be succeed?

Hopefully all will become clear later this week.