Cramo AS, the Norwegian wholly owned subsidiary of Cramo PLC, last week signed an agreement with Nordic Crane Group AS for the next five years, in a deal expected to be worth $100 million Norwegian kronor (about U.S. $16 million). The agreement covers the entire Nordic region. As part of the agreement, Cramo is acquiring Hugo Maskinutleie AS in Bergen, Norway, from Nordic Crane Bergen AS.
“The Norwegian deal clearly supports our view of increasing activity in the Nordic construction sector,” said Cramo CEO Vesa Koivula. “During the summer, we have closed five major dealers in Finland, Sweden and Norway. Three of them are outsourcing agreements — a new trend showing that not only the very largest, but also the mid-sized construction companies are interested in outsourcing their equipment handling. Obviously the rental industry benefits from both these trends, particularly companies like Cramo that has the capacity and resources to supply all equipment and services needed.”
“Nordic Crane Group is one of the leading mobile crane suppliers in Scandinavia, and this new cooperation agreement will offer our customers an even better service and product range in the Nordic region,” said Finn Lökken, managing director of Cramo AS Norway. “Bergen is also an important investment area for us. Acquiring Hego Maskinutleie AS strengthens our presence in and around the Bergen area.”
Nordic Crane had 2009 volume of about 700 million Norwegian kronor (about U.S. $113 million).
“One of the most important aspects of the agreement is Nordic Crane Group AS’s position in the industrial sector,” added Lökken. “The company has long experience and high competence based on a large number of projects and customers in this segment, both in Norway and Sweden.”