Highlights

  • US court ruled Snorkel exercised its call option and must complete contractual payment obligations.
  • Preferred Interest must be paid before or alongside the option exercise, court confirms.
  • Trial on disputed option price now expected in March or April 2026.

Tanfield Group Plc (LSE:TAN) holds a 49% equity interest in Snorkel International Holdings LLC, an aerial work platform business. The interest arose from a joint venture completed in October 2013 with Xtreme Manufacturing LLC, a company owned by Don Ahern of Ahern Rentals Inc. The investment is currently valued at GBP 19.1m, with this valuation subject to the outcome of ongoing legal proceedings in the US.

In October 2019, Tanfield disclosed receipt of a summons and complaint filed in Nevada by subsidiaries of Xtreme, namely SKL Holdings LLC and Snorkel. The dispute relates to the interpretation and application of contractual terms within the joint venture agreements governing Snorkel.

Nature of the US Proceedings

The proceedings center on whether, following issuance of a call option notice in November 2018, Snorkel could acquire Tanfield’s 49% stake for USD 0. Xtreme alleged that payment of the Priority Amount and Preferred Return—together defined as the Preferred Interest—was not required. As of 30 September 2018, this Preferred Interest totaled approximately USD 25m.

Tanfield rejected this interpretation and filed counterclaims against Snorkel, SKL Holdings LLC, Xtreme Manufacturing LLC, Ahern Rentals Inc, and certain directors and officers associated with those entities.

Court Rulings to Date

On 19 May 2025, the court granted Tanfield’s motion for partial summary judgment on specific contractual obligations. The ruling confirmed that Snorkel could not acquire Tanfield’s 49% interest for USD 0 and that payment of the Preferred Interest was required if the call option was exercised.

On 24 November 2025, the court granted a further motion for partial summary judgment. This ruling confirmed that Snorkel did exercise its call option in November 2018 and, as a result, must fulfill the contractual requirement to acquire Tanfield’s stake. The payment obligation includes the Preferred Interest plus an additional option price calculated by reference to Snorkel’s EBITDA at the relevant time.

Outstanding Issues and Next Steps

The value of the option price remains unresolved and is one of the key matters continuing to trial. As a result, the total consideration payable for Tanfield’s 49% interest in Snorkel has not yet been determined.

Due to procedural developments following the latest ruling, the trial has been delayed and is now expected to commence in March or April 2026. The proceedings will address the disputed option price and remaining issues under the joint venture agreements.

Share Price Snapshot

TAN was trading at GBX 5.50 per share, as of 26 November 2025.