Cramo buys OptiRent
By Euan Youdale09 April 2014
Cramo has strengthened its position in earth moving by acquiring all the shares of Finnish rental company OptiRent.
OptiRent, founded in 2007, is the market leader in Finland in earth moving rental equipment under 10 tonnes. OptiRent’s sales in 2013 were €2.3 million.
Following the deal, Cramo will establish a new service unit for earth moving in Vantaa, which will combine Cramo’s and OptiRent’s operations, specialising in earth moving and excavation. The unit will be led by OptiRent managing director Joni Ihalainen.
”We foresee substantial growth potential in earth moving rental business in Finland, as the rental penetration rate in this segment is still on a relatively low level compared to the rest of Europe,” said Tatu Hauhio, Cramo Finland managing director.
However, said Mr Ihalainen, market development has been slowed by the small size of current rental players in the market and weak investment potential. “By merging with Cramo, we will gain more resources for growth and operational development.”
Estimates show that in 2012, the rental value of earth moving equipment in Finland was about €61 million. Following the deal Cramo and OptiRent will own more than 400 earth moving rental units in Finland.
”We have set a target that by the year 2017 the rental value of earth moving equipment will already generate 10% of the total sales of Cramo Finland,” added Mr Hauhio.
The company’s main competitors are not other rental companies, but end users. “However, challenging economic times are more a possibility than a threat for rental, as fewer customers want to tie capital in their own equipment,” continued Mr Hauhio.
The parties did not disclose the value of the deal.