French rental company Loxam has agreed an acquisition fee of €25 million for Cramo’s Danish equipment rental operations.
The divestment is said to be in line with Cramo’s strategy, announced earlier this year, which will see the company focus its attention on its modular space business, in a bid to be a market leader in Denmark.
In 2016, Cramo’s Danish equipment rental business saw revenues of €20 million and comparable earnings before interest, taxes, depreciation and amortization (EBITDA) of €0.6 million. Cramo said the divestment would have a positive cash flow effect on its business, and will recognise a one-time capital loss of approximately €1 million in its third quarter results.
The deal is expected to close on 31 August this year.
Leif Gustafsson, president and CEO of Cramo, said, “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.”
Meanwhile, Gérard Déprez, president of Loxam, said, “I am pleased to welcome Cramo’s talented and experienced employees into Loxam.
“Together we will join forces to provide our customers with the best possible service, and build a reference and leading company in the Danish equipment rental market.”
2017 has proved fruitful for Loxam so far, with major acquisitions including Lavendon Group and Hune announced in the first quarter.
Cramo said the divestment would see its Danish employees remain part of the business. The company currently employs 80 people and has seven depots in the country providing equipment rental.