Equipment rental group Lavendon has recommended a proposed £374 million takeover offer from French rival Loxam.

Last month, the Group's board rejected a £348m bid from Belgian company TVH.

However, the 220 pence per share offer from Loxam has been accepted by Lavendon's board.

John Standen, Chairman of Lavendon, said: "Lavendon is a company in robust health, uniquely positioned across diverse geographic markets, with strong revenue growth, cash flow and ROCE.

"In reaching its decision, the Lavendon Board has considered in great detail the best interests of all shareholders and the Company as a whole. We believe that Loxam's all-cash offer provides Lavendon's shareholders with an opportunity to realise significant value at an attractive premium to the pre-offer period share price, whilst securing early delivery of the Lavendon Group's potential against a backdrop of increased economic uncertainty. This is why the Lavendon Directors unanimously intend to recommend Loxam's offer."


Gérard Déprez, President of Loxam, said: "The combination of Lavendon and Loxam represents a unique opportunity to build an unrivalled leader in the European aerial work platforms rental market. Loxam has followed Lavendon for a number of years and has been impressed by its management team and the numerous leadership positions it now holds in several markets."

However, in a statement, TVH Group said: "TVH is considering its options and urges Lavendon Shareholders to take no action in response to the announcement by Loxam. A further announcement will be made in due course."

(LM/MH)