• Research Tree
  • Features
  • Pricing
  • Events
  • Reg.News
  • Short Interest
  • Explore Content
    • Explore

      • Providers
        • Providers

          • Free/Commissioned
          • High Net Worth Offering
          • Institutional Offering

          Free/Commissioned

          Research that is free to access for all investors. Companies commission these providers to write research about them.

          View Research

          What is our Main Bundle Offering?

          Brokers who write research on their corporate clients and make it available through our main bundle offering.

          View Research

          What is Institutional?

          Research that is paid for directly by asset managers. Only accessible to institutional investors permissioned for access.

          View Research
      • Regions
        • Regions

          • UK
          • Rest of EMEA
          • N America
          • APAC
          • LatAm
      • Exchanges
        • Exchanges

          • Aquis Apex
          • Australian Securities Exchange
          • Canadian Securities Exchange
          • Euronext Paris
          • London Stock Exchange (domestic)
          • SIX Swiss Exchange
      • Sectors
        • Sector Coverage

          • Building & Construction
          • Discretionary Personal Goods
          • Discretionary Retail
          • Energy
          • Health
          • Investment Trusts
          • Media
          • Resources
          • Technology
      • Small / Large Cap
        • Small / Large Cap

          • UK100
          • UK250
          • UK Smallcap
          • UK Other Main Markets
          • Other
  • Login
  • Sign Up
LIVE

Event in Progress:

Join Here ×
  • 22 Nov 16
title

Lavendon rejects £350m cash offer from TVH

  • 1072 views
James Valentine

Digital editor at Research Tree

 
Lavendon
Strap line

Panmure Gordon says firm could be worth up to 236p, 15% more than TVH's offer

Companies: Lavendon Group


Body

 

Belgian construction firm Thermote & Vanhalst (TVH) has launched a formal takeover bid for AIM-listed Lavendon Group, offering c.£350m for the UK-based parts and equipment rental business.

 

It is the second time TVH has made an attempt to acquire Lavendon, after its failed approach in 2011, and today's offer also looks to have failed initially, as management recommended that shareholders should reject the offer.

 

In an announcement made to investors this morning, Lavendon's management said that following the negotiations, TVH offered 205p/share for entire issued share capital, a 47% premium to Monday's close of 139p:

 

Following further negotiations and once the limited due diligence was complete, TVH sought the support of Lavendon's major shareholders. Following discussions with these shareholders, TVH indicated that a price of 205 pence per Lavendon share was the maximum price it would be prepared to pay.

TVH secured irrevocable support for the deal from GVQ and Unicorn, with a combined holding of 12.3%, however, Lavendon says when it consulted with some shareholders approached by TVH, it found that the level of support anticipated "was not forthcoming", so the Board unanimously concluded not to recommend the offer.

 

"...due to concerns over the significant execution risk and the potential disruption to Lavendon's business. The Board subsequently encouraged TVH to approach additional shareholders to establish whether TVH could secure further support but they declined to do so."

TVH says it wants to buy the firm to help target its Middle Eastern markets, with Pascal Vanhalst saying it would be a big step forward for TVH:

 

“The acquisition of Lavendon would represent a significant step forward in the growth of our specialised rental activities.

 

It would [enable TVH equipment to]... become active in new markets such as the UK, the Middle East and France. With Lavendon’s vast rental know-how and focus on safety, the customers of the enlarged group would clearly benefit.

Mr Vanhalst says TVH had sought to announce the offer with Lavendon's support, and that the two companies had worked together to reach the price of roughly 200p.

 

However, in a contradictory account to Lavendon's, he says that due to Lavendon's concerns around deliverability of a scheme of arrangement, concerns he says TVH proposed to change, the Board of Lavendon were unwilling to recommend the offer.

 

“TVH believes the offer fully values the company and its prospects and has therefore decided to release this firm offer announcement to allow Lavendon shareholders to decide on the merits of the offer.”

Broker View

 

Speaking about today's announcement, broker Panmure Gordon said that whilst it was easy to see how TVH had come to value Lavendon at 205p, it believed the company to be worth around 236p and said it expected an offer of 215p-220p would be enough to tempt shareholders:

 

"The offer (+47.5% premium to last night's close) values the business on a forward EV/EBITDA of 4.7x, which compares with 4.6x forward multiple over the last three years...

 

The offer values the business on price to book (ex-IFA) of 1.6x. This compares with 1.1x over the last 12 months and 1.7x over the last 36 months. Therefore, it is quite easy to see how TVH has valued its offer.

Panmure said Lavendon's recent Q3 trading update indicated positive momentum in the UK and stated its belief that the business's forward P/E of 10x (in-line with the five-year average) should value the firm at 236p.

 

"Having said that, any person/corporate acquiring Lavendon today is buying the business with a degree of turnaround risk. Consequently, we appreciate why a rational price TODAY would be at a discount to the 236p..."

Panmure also stressed that the prospects of a counter bid from another quoted player are "slim" but that the vertical has had private equity interest historically. 

 

Ahead of expectations

 

On the 15 November, CEO of Lavendon, Don Kenny, said the board was encouraged by trading performance to date, and as a result of favourable exchange rates the group's results were expected to be marginally ahead of expectations for 2016.

 

Lavendon's share price jumped 47% in early trading before settling 40% above Monday's close.

 


Body Two

Body Three

Body Four

Body Five

The information contained within this post is based on personal experience and opinion and should not be considered as a recommendation to trade nor financial advice.

More Content

More Content

M&A - One reason why I’m still bullish on UK equities

Companies: LVDULVRKHCCHT

Research Tree

Morning Song

Companies: LVD IMG SAA

Singer Capital Markets

Loxam raises Lavendon bid to 250p

Companies: Lavendon Group

Research Tree

Re-run of the value screen and 10 focus stocks

Companies: BILN BOOT CGS LVD GOAL VTU CARR

Singer Capital Markets

Lavendon - Loxam outbids TVH and gets LVD endorsement

Companies: Lavendon Group

Research Tree
next
 
Research Tree
Useful Links
  • Features
  • Pricing
  • RNS/Newswires Feeds
  • Providers Hub
  • Company Hub
  • Stock Pick League
  • Chrome Extension
  • iOS and Android Apps
Account
  • Login
  • Join Now
  • Contact
  • Follow us on Linkedin
  • Follow us on X

© Research Tree 2025

  • Apple Store
  • Play Store
  • Terms of Service
  • Privacy Policy and Statement on Cookies

Research Tree will never share your details with third parties for marketing purposes. Research Tree distributes research documents that have been produced and approved by Financial Conduct Authority (FCA) Authorised & Regulated firms as well as relevant content from non-authorised sources, who are not regulated but the information is in the public domain. For the avoidance of doubt Research Tree is not giving advice, nor has Research Tree validated any of the information.

Research Tree is an Appointed Representative of Sturgeon Ventures which is Authorised and Regulated by the Financial Conduct Authority.

Top
  • Home
  • Features
  • Pricing
  • Event Hub
  • Reg.News
  • Short Interest Tracker
  • Explore Content
    • Regions
      • UK
      • Rest of EMEA
      • N America
      • APAC
      • LatAm
    • Exchanges
      • Aquis Apex
      • Australian Securities Exchange
      • Canadian Securities Exchange
      • Euronext Paris
      • London Stock Exchange (domestic)
      • SIX Swiss Exchange
    • Sectors
      • Automobile Industry
      • Banks
      • Building & Construction
      • Chemicals
      • Discretionary Personal Goods
      • Discretionary Retail
      • Energy
      • ETFs
      • Financial Services
      • Food & Drink
      • Food Production
      • Health
      • Household Goods & DIY
      • Industrial Equipment, Goods & Services
      • Insurance & Reinsurance
      • Investment Trusts
      • Leisure, Tourism & Travel
      • Media
      • Open-ended Funds
      • Other
      • Real Estate
      • Resources
      • Staple Retail
      • Technology
      • Telecoms
      • Utilities
    • Small / Large Cap
      • UK100
      • UK250
      • UK Smallcap
      • UK Other Main Markets
      • Other
    • Private/EIS
      • EIS Single Company
      • EIS/SEIS Funds
      • IHT Products
      • SEIS Single Company
      • VCT Funds
  • Providers
    • Free/Commissioned
      • Acquisdata
      • Actinver
      • Actio Advisors
      • Asset TV
      • Astris Advisory
      • Atrium Research
      • Baden Hill
      • BlytheRay
      • BNP Paribas Exane - Sponsored Research
      • Bondcritic
      • Brand Communications
      • BRR Media
      • Calvine Partners
      • Capital Access Group
      • Capital Link
      • Capital Markets Brokers
      • Cavendish
      • Checkpoint Partners
      • Clear Capital Markets
      • Couloir Capital
      • Doceo
      • Edison
      • Engage Investor
      • Equity Development
      • eResearch
      • First Equity
      • Five Minute Pitch TV
      • focusIR
      • Fundamental Research Corp
      • Galliano’s Latin Notes
      • GBC AG
      • goetzpartners securities Limited
      • Golden Section Capital
      • GreenSome Finance
      • GSBR Research
      • H2 Radnor
      • Hardman & Co
      • Holland Advisors
      • Hypothesis Research
      • InterAxS Global
      • Kepler | Trust Intelligence
      • London Stock Exchange
      • Longspur Clean Energy
      • Mello Events
      • Messari Research
      • Nippon Investment Bespoke Research UK
      • NuWays
      • OAK Securities
      • Oberon Capital
      • Optimo Capital
      • Panmure Liberum
      • Paul Scott
      • Peel Hunt
      • PIWORLD / Progressive
      • Proactive
      • Progressive Equity Research
      • Quantum Research Group
      • QuotedData
      • Research Dynamics
      • Research Tree
      • Resolve Research
      • SEAL Advisors Ltd
      • ShareSoc
      • Shore Capital
      • Sidoti & Company
      • Small Cap Consumer Research LLC
      • StockBox
      • Tennyson Securities
      • The AIC
      • The Business Magazine Group
      • The Edge Group
      • The Life Sciences Division
      • Trinity Delta
      • Turner Pope Investments
      • UK Investor Group
      • ValueTrack
      • Vox Markets
      • VRS International S.A. - Valuation & Research Specialists (VRS)
      • VSA Capital
      • Winterflood Securities
      • Yaru Investments
      • Yellowstone Advisory
      • Zacks Small Cap Research
      • Zeus Capital
    • High Net Worth Offering
      • Fox-Davies Capital
      • ABG Sundal Collier
      • ACF Equity Research
      • Align Research
      • Allenby Capital
      • AlphaValue
      • Alternative Resource Capital
      • Arctic Securities
      • Arden Partners
      • Auctus Advisors
      • Baptista Research
      • BNP Paribas Exane - Sponsored Research
      • Canaccord Genuity
      • Cavendish
      • Couloir Capital
      • Degroof Petercam
      • Dowgate Capital
      • First Berlin
      • First Equity
      • First Sentinel
      • Greenwood Capital Partners
      • Hannam & Partners
      • Hybridan
      • Kemeny Capital
      • Longspur Clean Energy
      • Louis Capital
      • Magnitogorsk Iron and steel works
      • Medley Global Advisors
      • Northland Capital Partners
      • OAK Securities
      • Oberon Capital
      • Panmure Liberum
      • QuotedData Professional
      • Shard Capital
      • ShareSoc
      • Shore Capital
      • Singer Capital Markets
      • SP Angel
      • Stanford Capital Partners
      • Stifel FirstEnergy
      • Stockdale Securities
      • Tamesis Partners
      • Tennyson Securities
      • The Life Sciences Division
      • Turner Pope Investments
      • VSA Capital
      • Whitman Howard
      • Yellowstone Advisory
      • Zeus Capital
    • Institutional Offering
      • Fox-Davies Capital
      • ABG Sundal Collier
      • ACF Equity Research
      • Acquisdata
      • Allenby Capital
      • Alternative Resource Capital
      • Arctic Securities
      • Arden Partners
      • Auctus Advisors
      • BNP Paribas Exane
      • Bondcritic
      • Canaccord Genuity
      • Capital Access Group
      • Capital Link
      • Cavendish
      • Couloir Capital
      • Degroof Petercam
      • Dowgate Capital
      • Edison
      • First Berlin
      • First Equity
      • First Sentinel
      • Five Minute Pitch TV
      • Fundamental Research Corp
      • Galliano’s Latin Notes
      • GBC AG
      • Golden Section Capital
      • Goodbody
      • Greenwood Capital Partners
      • Hannam & Partners
      • Holland Advisors
      • Hybridan
      • InterAxS Global
      • Investec Bank
      • Kepler | Trust Intelligence
      • Numis
      • NuWays
      • OAK Securities
      • Oberon Capital
      • Panmure Liberum
      • Peel Hunt
      • QuotedData
      • QuotedData Professional
      • Research Dynamics
      • Research Tree
      • Shard Capital
      • Shore Capital
      • Sidoti & Company
      • Singer Capital Markets
      • Small Cap Consumer Research LLC
      • SP Angel
      • Stanford Capital Partners
      • Stifel
      • StockBox
      • Tamesis Partners
      • Tennyson Securities
      • The AIC
      • The Business Magazine Group
      • The Life Sciences Division
      • ValueTrack
      • Velocity Trade
      • VSA Capital
      • Winterflood Securities
      • Zacks Small Cap Research
      • Zeus Capital
  • Contact
  • Sign Up
  • Sign In