Is this good news or bad news for Ainscough

[topkit]

Just read this in Vertikal.net,

I hope that this is good news and not going to be yet another asset stripping excercise by the City once again!!

Bradley Hall Holdings, the owner of the UK’s largest crane rental company Ainscough, has been acquired by a partnership made up of Goldman Sachs and private equity firm TPG. The business was purchased from Caird Capital a joint venture between Lloyds and Coller Capital.

The deal also coincides with £105 million of additional asset based finance, provided by GE Capital, Burdale Financial and RBS Invoice Finance, in order to help the company expand further into the renewable energy market.

Ainscough managing director Neil Partridge said: "The TPG and Goldman Sachs partnership brings extensive experience in the sector to Ainscough. They are extremely resourceful and will encourage our strategic thinking to further develop and grow the business."

Bradley Hall Holdings, the owner of the UK’s largest crane rental company Ainscough, has been acquired by a partnership made up of Goldman Sachs and private equity firm TPG. The business was purchased from Caird Capital a joint venture between Lloyds and Coller Capital.

The deal also coincides with £105 million of additional asset based finance, provided by GE Capital, Burdale Financial and RBS Invoice Finance, in order to help the company expand further into the renewable energy market.

Ainscough managing director Neil Partridge said: "The TPG and Goldman Sachs partnership brings extensive experience in the sector to Ainscough. They are extremely resourceful and will encourage our strategic thinking to further develop and grow the business."


Aisncough was the subject of a Management Buy Out from the Ainscough family in 2007, funded by an integrated debt and equity package. With Lloyds looking to reduce its debt load as part of its current restructuring programme, Ainscough was included in a package of companies offered to Goldman Sachs and others - but is one of the first deals to be completed.

Vertikal Comment

The change in ownership will have little immediate impact on the operational side of the Ainscough business. However it does give the company a stronger - restructured balance sheet and owners with the resources and more importantly the willingness, to raise funds and follow opportunities that may arise.

This is almost certainly good news for the company and its employees.

[bigkit]

IMO sounds like another re-jigging of an insolvent company so the major creditors/lenders can get some of their money back.

All that'll happen is that the company will be kept artificially affloat by more of borrowed money then the kit will have to work even harder in an effort to repay the debts. This inturn means rates will be kept lower in that sector because the company will need to win every job to service its debts!

Just my cynical point of view, been happening for ages now in the plant sector!

[modelman093]

Remember Sparrows!

[volvoabdn]

Sounds like james jack should have sold to someone else rather than get involved in this mess

[cranky the crane]

All talking crap, its a good thing cos Lloyds didnt want the debt so another lender has taken it on, if anything its a good thing for Ainscough cos they have also been given £105million to invest in more cranes.

[bigkit]

I take your point and its good that someone is prepared to give it a go, but dont forget that that money will need paying back at sometime! No-one throws £105m away for nothing!!!

[topkit]

If you read into what has been said in Vertikal.net you will see a couple of comments made.

1. Change of ownership will have little immediate impact.
2. Restructured balance sheets!

That money has to be repaid give it 4 years and they will be looking for a new owner or hiving parts of the business off to other investors. Goldman Sachs are not in it for the love of cranes much like the banks their guys are on large bonuses to get results.

I have worked for two companies that have had take overs like this and both no longer trade so be warned, i hope i am wrong but when you are talking in seven figures they will want a return with profit

[bigkit]

We sing from the same sheet TOPKIT!

Asset strippers on the war path then, beware!

[shirtbox2003]

when times are good.big is good.that old saying still runs true.the bigger you get the harder you fall.i feel sorry for all the smaller guys ainscoughs took out over the years.with work as it is they cant keep paying wages and running costs for long.sorry but outlook is not looking good for guys working there.

[modelman093]

Never seem to see much about Baldwins these days - or do I read the wrong mags' ?