Snorkel has sold a 49% stake to Xtreme Manufacturing LLC

The Tanfield Group plc (Tanfield) has sold a 49% stake in Snorkel, a manufacturer of self-propelled aerial work platforms, to a new company controlled by Xtreme Manufacturing LLC (Xtreme) for US$80 million.

Snorkel has manufacturing facilities across the globe and supplies a range of cherry-pickers used in building, construction and infrastructure projects.

Xtreme is a manufacturer of telescopic material handlers, under the control of Don Ahern. Mr Ahern owns Ahern Rentals, Inc., one of the largest privately held equipment rental companies in the world and a long-standing customer of Snorkel. Xtreme has committed working capital facilities of up to US$50 million to support Snorkel’s growth plans and Tanfield will retain a 49% interest in Snorkel along with a preferred interest position of US$50 million.

In early 2013, the Board of Tanfield took the decision to appoint Cavendish to help find a purchaser for Snorkel. Following the global economic downturn in 2008, Snorkel suffered a catastrophic collapse in its market. In the four years ended 31 December 2012, the cumulative losses of Snorkel were circa US$80 million. For the first six months of 2013 Snorkel suffered further losses of over US$13 million. Market demand has now improved but Snorkel has continued to struggle due to working capital constraints.

Oaklins Cavendish, based in the UK, advised the seller in this transaction.