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Loxam to snap up Cramo operations
Posted on Friday, 14 July 2017 13:17
Loxam has agreed to buy the Danish equipment rental assets of Finnish construction machine and apparatus rental group Cramo for around EUR 25.00 million.
In 2016, the operations generated net sales and earnings before interest, tax and amortisation of EUR 20.00 million and EUR 600,000, respectively.
The transaction is expected to have a positive cash flow effect of roughly EUR 24.00 million.
Commenting on the acquisition, chief executive of the vendor, Leif Gustafsson, noted: “The decision to divest our equipment rental in Denmark is in line with Cramo’s new strategy shape and share, which aims towards a leading position in all Cramo markets.
“In the future, we will focus our investments on the potential in our modular space offering in Denmark.”
The deal is expected to close on 31st August 2017, subject to a number of customary closing conditions.
Cramo claims to be the second-largest construction machinery and equipment rental company in Europe.
The business, which was formerly known as Rakentajain Konevuokraamo, operates in 15 countries and in 324 depots.
Cramo is listed on Nasdaq Helsinki and has 80 members of staff in Denmark within its equipment rental division, which will all be offered new employment as part of the deal.
Danish firm Loxam is billed as a frontrunning construction apparatus rental group, with more than 7,400 employees worldwide.
The company has operations across 12 European countries, including France, German, the UK, Belgium and Portugal.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 42 deals targeting construction, mining and forestry machinery and equipment rental and leasing firms announced worldwide since the beginning of 2017.
The most valuable of these was Sunbelt Rentals’ USD 279.00 million purchase of US firm Pride Equipment in April.
Compact Power Equipment, Clear Lift Holdings and Coast Crane Company, among others, have also been targeted so far this year.
© Zephus Ltd