15
HIRE AND RENTAL NEWS • AUGUST 2014
FEATURE
protection. Apparently the company
wasn’t technically bankrupt but filing for
chapter 11 was the only way to keep the
take-over wolves from the door and allow
the company the time and protection to
manoeuvre and consolidate. The onset
of the GFC naturally had an impact on
the company’s earnings too, and profit
dropped, but in a twist of fate the company
was able to take advantage of a dire
situation and reinvent itself.
With the GFC in full swing the company
had only one option to meet its debt
requirements, expand. At a time when
everyone else was laying off staff, closing
branches and minimising debt, Don went
on an active and prolonged campaign of
opening more branches. This was made
possible due to the fact good people were
being retrenched from other companies,
and prominent branch locations were
available due to other business closures.
The other important factor was the
company didn’t liquidate any rental fleet.
When business finally improved the
company was well positioned to service
the rental market and take advantage
of the upturn. Since then the growth,
turnover, and profitability of the company
has gone from strength to strength and
now is in a substantially stronger position
than it has been for many years.
Snorkel acquisition
“A few months after we emerged from
bankruptcy I heard Snorkel was up for sale.
I had built my whole career around two
companies - Skyjack scissors and Snorkel
booms - so I was keen to be involved. At
Bauma in 2013 I had various discussions
with senior management and although
they were already deeply involved with
other parties they accepted my plan.
Currently Tanfield has 49% shareholding
but we will be buying them out over the
next few years.
“I will start by investing in spare parts and
customer support and redesigning some of
the Snorkel machines. I want them to be
simple, reliable and long-lasting which is
what they were known for. As a rental guy
I want it simple - no oscillating axles, two
wheel drive, and low hydraulic pressure
etc. You have to know where to put the
money in and where not to.
“This year Snorkel may have a worldwide
market share of 1%, but my five year plan is
to increase that to 5%.
“Xtreme had no debt until it bought
Snorkel but now has $35 million, Xtreme
and Snorkel revenues combined should
be well over $150 million and in five years
close to $500 million.” Don said.
Visit:
Don Ahern speaking at the HRIA Convention
in May
