Snorkel sale ongoing

Tanfield Group has confirmed that the proposed sale of Snorkel, its aerial work platform division, is ongoing.

“There are a number of potential acquirers proceeding through due diligence and the negotiation of a sale and purchase agreement,” said a company spokesman.

Tanfield first made public its intentions to sell Snorkel in February this year, when it said it had been approached by a number of interested parties, (see Linked Articles below).

In a trading update issued today, the spokesman added that the company required additional working capital to return to sustained profit. "The business is currently being managed to conserve cash through the mergers and acquisitions (M&A) process. Given that growth requires investment of cash into working capital, the group has therefore not been able to fully respond to the opportunities in the market.

"However, those opportunities remain strong driven by the ongoing recovery in the sector. Snorkel's product range, brand and reputation continue to generate strong demand in the market and the board believes this to be of major importance to the engaged potential buyers,” concluded the spokesman.