Lavendon swoops for Blue Sky
Lutterworth-based Lavendon Group has bought powered access equipment designer Blue Sky Access for up to £7.4m.
Blue Sky, based in Buckinghamshire, designs and engineers products to improve efficiency and safety in the use of powered access equipment.
The majority of these products represent intellectual property and are protected by existing and pending patents, said Lavendon.
The Lutterworth company specilises in supplying powered access rental equipment.
Upon completion, Lavendon will pay £3.4m for the company. Additionally, deferred consideration of £1.5m and £1m will be paid on 18 October 2012 and 18 October 2013, respectively.
A further payout of up to £1.5m could be dished out over the next four years, dependent upon future revenue generation.
The money will be funded from existing bank facilities, and, as part of the transaction, Lavendon will assume Blue Sky's net cash of £400,000.
Lavendon's chairman John Standen said: "We are delighted to have completed the acquisition of Blue Sky. We look forward to continuing to work with the existing senior management team, all of whom will be retained, utilising their expertise and experience to develop further our service offering to our customers, in turn strengthening our position as the leading powered access rental company in Europe and the Middle East."
The latest unaudited accounts for Blue Sky for the year ended 31 December 2010 showed revenue of £400,000, a profit before tax of £100,000 and gross assets of £300,000.
