Snorkel sale approved by board
By Euan Youdale07 October 2013
Tanfield Group's board has approved the transfer of majority ownership of its access equipment division Snorkel to US-based Xtreme manufacturing at a General Meeting this week.
Under the deal, announced 20 September, Tanfield will retain a 49% share of Snorkel, which will be transferred to a new company, Snorkel International Holdings.
Subject to Snorkel making profit targets within five years Tanfield will be paid US$50 million. Tanfield’s share would then fall to 30% and it would have the option to sell that remaining share at a 5.5 EBITDA multiple.
Xtreme is the telehandler manufacturer owned by Don Ahern, also owner of Ahern Rentals in Las Vegas.
In its statement released today, Tanfield said, “The company is pleased to announce that the resolutions in relation to the disposal of the powered access division and approval of the company's investing policy were duly passed at the General Meeting of the Company held earlier today,” Tanfield said.
“The remaining conditions precedent to the sale are progressing well and the company will move to a closing of the transaction as soon as is practicable. The company will provide a further announcement in due course.
The deal will see Xtreme invest between $35 and $50 million on a recovery plan. The strategy will be for Xtreme to use Snorkel’s global sales network to boost exports of its telehandlers, while Snorkel’s volumes will be increased by sales to Ahern Rentals, historically one of its biggest customers.
See the full story about the sale in Linked articles