Cramo sells accommodation manufacturing business in Finland
15 March 2012
Cramo's Finnish subsidiaries Cramo Production Oy and Cramo Finland Oy have have agreed to sell their modular space production and customised accommodation rental businesses to Profipri Oy and Randum Oy, which are managed by MB Funds. Cramo will continue to rent standard modular space units.
The parties have agreed not to release the purchase price but Cramo said that it expects to record a capital gain of approximately €3 million at the EBITA level in its results for the first quarter of 2012.
Mr Ossi Alastalo, senior vice president of Fleet Management/Modular Space at Cramo, will leave his current position and become managing director of Profipri and Randum.
Cramo Production is a leading producer of modular space systems and industrial halls in Finland. The company has around 160 employees and its sales were approximately €26 million in 2011.
Cramo said the sale of the business was in line with its strategy, in which owning manufacturing capacity is considered non-core. Cramo will continue to buy standard modular space units from the new manufacturing company.
Cramo Finland's customised modular space rental business was active mainly in the public and industrial sectors where units are designed to the specific needs of customers. This part of the business generated sales of around €5 million in 2011.
In the early part of 2010 Cramo sold a portfolio of customised modular space rental businesses and following this recent sale will no longer operate in that sector in Finland.
Vesa Koivula, president and chief executive officer of Cramo said, "The divestment of these two businesses releases management resources and capital for our core modular space operations.
According to our strategy, we will continue the further development of the standardised modular space rental business and its geographical expansion. In the past few years, Cramo has invested a lot in developing new standardised modular space solutions and in expanding this business within the Nordic countries and in Central and Eastern Europe"
Juha Tukiainen, a partner of MB Funds said, "This acquisition provides MB Funds with an interesting opportunity to enter the customised modular space rental business.
"With its well-established market position and highly motivated staff, the production facilities enable us to concentrate on the further development of customised modular space solutions.
"We have plans to develop this business forward both in Finland and internationally. We also look forward to developing a long-term relationship with Cramo within modular space manufacturing."