Lavendon recommends Loxam's £374m offer
By Murray Pollok14 December 2016
Lavendon and Loxam have reached agreement on a deal that would see Loxam acquire Lavendon for a cash price of 220 pence per share, valuing the business at £374.0 million. Lavendon is recommending the offer to its shareholders.
TVH responded to the announcement this morning by setting aside its statement that it would not increase its initial offer price of 205 pence per share, leaving open the possibility of a raised offer. It advised Lavendon shareholders to take no action and said it would make a further announcement.
On the proposed deal between Loxam and Lavendon, Gérard Déprez, President of Loxam, said the combination of the two represented a unique opportunity to build an “unrivalled leader” in the European aerial work platforms rental market; “Loxam has followed Lavendon for a number of years and has been impressed by its management team and the numerous leadership positions it now holds in several markets.
He said; "The two groups are highly complementary in Europe, and Lavendon's Middle Eastern business will provide the combined entity with opportunities in growing markets.”
John Standen, Chairman of Lavendon, added; “In reaching its decision, the Lavendon Board has considered in great detail the best interests of all shareholders and the company as a whole.
“We believe that Loxam's all-cash offer provides Lavendon's shareholders with an opportunity to realise significant value at an attractive premium to the pre-offer period share price, whilst securing early delivery of the Lavendon Group's potential against a backdrop of increased economic uncertainty. This is why the Lavendon Directors unanimously intend to recommend Loxam's offer.”
Loxam is the largest equipment rental company in Europe, with €838 million of revenues generated in 2015. It has 5000 employees and a network of 641 branches in 11 countries in Europe (France, Germany, the United Kingdom, Ireland, Belgium, Switzerland, Spain, Luxemburg, the Netherlands, Denmark and Norway), as well as in Morocco and Brazil.
Lavendon is a European and Middle Eastern market leader in the rental of powered access equipment. It has 70 depots in the UK, Continental Europe and the Middle East, and operates a fleet of more than 21000 units.