02.10.2009

Lavendon launches EPL-Skylift

Lavendon Access Services launched EPL-Skylift yesterday, merging Skylift, EPL Access and Rise Hire. EPL was acquired on the 6th August this year and Rise hire in April 2007. Skylift was itself a result of consolidation within the Lavendon Group last November when the company rebranded to form Panther, Skylift and Nationwide Platforms.

The Lavendon UK line-up now consists of Panther, EPL-Skylift and Nationwide Platforms.
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The new EPL Skylift logo

EPL-Skylift consists of a 12 depot national network and a fleet of more than 660 vehicle mounted platforms - 278 trucks - of which about 110 are self drive models up to 7.5 tonnes - and 385 van and Land Rover mounted platforms - with working heights from nine to 72 metres.

“Bringing together both company identities was vital, as they both represent strong positions in the UK market,” said Peter Douglas, managing director of Lavendon Access Services. “Whilst the two names are already familiar to the respective customers, we now have the chance to move forward as a combined unit offering the best service in the UK.”

The acquisition saw 105 members of staff and 402 platforms added to the Lavendon group. EPL-Skylift now employs 170 staff (57 were dropped from the three businesses in the merger) with depots located in Glasgow, Falkirk, Belfast, Coventry, St Albans, Manchester, Birmingham, Leeds, Oldham, Cardiff, Bristol and Sandy and its headquarters based in Lutterworth.
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The new EPL Skylift vehicle mounted line-up

Three EPL depots have been closed – its Sandy head office, the Carlisle depot and refurb facility and the Enfield depot which has been moved to Sklift St Albans. In addition, the Rise Hire depot in Over has been closed and the vans distributed across the Nationwide network.

“EPL has built up a great reputation in the industry over 30 years, for high quality service, excellent engineering, fleet and customer service, qualities we wanted to retain,” said Douglas. “Although a well run company, it ran into difficulties trying to be a national player but without sufficient scale to generate acceptable levels of profitability, particularly in the current trading environment.”

“The combination of EPL and Skylift allows us to operate nationally with much larger scale depot operations and will be a significant market leader in the vehicle mounted sector.”
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Peter Douglas, UK managing director of Lavendon Access Services

“If Skylift employed the same employee:revenue ratio as EPL it would employ 177 employees – it actually employed 122. Similarly it Lavendon Access Services in the UK employed the same employee/revenue ratio it would employ 1850 employees – rather than the 850 it currently employs.” said Douglas.

“The acquisition was an opportunity to reduce the combined fleet without any detrimental effect our customers.”

He said that EPL’s customer base was also made up of businesses less affected by the recession than Lavendon’s, while the Rise Hire business is predominantly a long term rental proposition from two bases, whereas EPL is more geared towards short term spot rental nationally.

“All of these factors meant that it was a perfect fit for Skylift, Rise Hire and EPL to join forces, and the integration over the last eight weeks has gone very well indeed,” said Douglas.
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EPL Skylift operations director Graeme Hill

The new structure has four regional general managers – Bob Gillies, Scotland, John Weights, North, Dave Reynolds, Midlands and the South West and currently a vacant position for the South East (it will probably be filled internally) all reporting to the operations director Graham Hill. Sales will be dealt with by sales director Gary Brady.
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EPL Skylift sales director Gary Brady

Vertikal Comment

This merger and branding was predictable as it is logical, while some will be sad to see EPL disappear as an independent company, it is true that the business was carrying way too much cost for the size of its fleet.

The days of a 100 lifts per depot are vanishing rapidly, unless it is a niche product or service offering – or low overhead family business. EPL needed to cut its overheads or grow, something that for various reasons it could not fund in the current economic climate.

Lavendon now has a very impressive vehicle mounted aerial lift fleet with a market share of around 35 percent in both the Van and the truck mounted rental market. At the same time its largest competitor Loxam appears to lack a clear strategy towards future growth or development in the UK.

The net result should allow Lavendon to set the agenda and the example in this market, and benefit from a very solid return on both its EPL acquisition and its vehicle mounted investments, even after allowing for current market conditions.