Helsinki, Finland-based Cramo Plc has signed an agreement to acquire the share capital of Theisen Baumaschinen AG, a Germany-based equipment rental group, from Arrex Beteiligungs-GmbH, a privately owned holding company, for about €47 million (about $62 million).
Cramo will also assume Theisen’s existing net debt and financial leasing liabilities, bringing the total transaction to about €85 million.
Theisen Group is one of the largest equipment rental companies in Germany, with a rental fleet consisting of construction machinery, aerial equipment and tools. About 90 percent of its revenue comes from Germany, where Theisen has about 90 rental branches. The company has nine branches in Austria, three in Switzerland and one in Hungary. Its customers include building and construction companies, property management firms, the service industry and private customers.
Theisen generated €85.7 million in revenue in 2009 and EBITDA of about €11.4 million. The company is believed to have improved profitability in 2010.
The acquisition gives Cramo a presence in Germany, Europe’s largest construction market and fourth -argest equipment rental market, estimated at about €3.5 billion. Cramo is already a major player in the Nordic countries, Central and Eastern Europe.
“Through the acquisition of Theisen, Cramo strengthens its leading market position in the European equipment rental market,” said Vesa Koivula, president and CEO of the Cramo Group. “Theisen is an ideal complement to our current business operations not only from a geographic, but also from a product, service and customer perspective. Theisen’s wide depot coverage provides us good opportunities to introduce new products, services and concepts to Theisen’s existing customers, while also better opportunities to serve new customers in the European markets. We also think that the timing is right for the transaction, as we are already seeing economic recovery in Theisen’s markets after the recession.”
Theissen’s managing director Alexander Renner will remain with the business as a senior consultant.
Cramo said it expects the acquisition to close by the end of January.