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Cramo weighs up potential offer
Posted on Wednesday, 06 November 2019 12:01
Finland-based equipment rental services provider Cramo is evaluating an offer made to take over the company as part of its ongoing strategic review.
The group is currently in advanced negotiations with an unnamed suitor regarding a potential voluntary cash tender bid to buy the business.
Cramo expects the offer price for a possible sale to be EUR 13.25 per share, which would represent a premium of 31.2 per cent to the company’s close of EUR 10.10 on the 4th November 2019, the last trading day prior to the announcement.
The potential transaction would be subject to customary conditions and regulatory approval.
However, Cramo warned there is no guarantee if or how an offer will take place and will disclose any further information as and when is appropriate.
The group’s shares closed up to EUR 12.86 following the statement yesterday, giving the business a market capitalisation of EUR 574.72 million.
Headquartered in Vantaa, Cramo is billed as the second-largest general equipment rental company in Europe.
Its offerings include power tools, pumps, construction machines, as well as temporary electricity devices.
The company has a network of 300 depots, which serve over 150,000 customers across the Nordic countries, and central and eastern Europe.
For the six months ended 30th June 2019, Cramo generated sales of EUR 301.50 million, up slightly from EUR 299.90 million in the corresponding period of 2018.
Within the same timeframe, the group recorded earnings before interest, tax, depreciation and amortisation of EUR 92.90 million (HY 2018: EUR 81.00 million).
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 199 deals targeting commercial, industrial machinery and equipment rental and leasing companies announced globally since the beginning of 2019.
In the most valuable of these to date, Tokyo Century Corporation, through TC Skyward Aviation US, agreed to buy the remaining 75.0 per cent stake it did not own in Aviation Capital Group for USD 3.00 billion.
© Zephus Ltd