Helsinki, Finland-based international rental giant Cramo recently signed a letter of intent to acquire Czech rental company Techniline for an undisclosed sum.
The Prague-based company was the Czech Republic’s leading rental company with more than €8 million (about U.S. $12.4 million) in revenue in 2007. Cramo currently has only a limited operation in the Czech Republic. Techniline also has operations in Slovakia. The company has branches in Pardubice and Ostrava, Czech Republic, and Bratislava and Kosice, Slovakia, as well as headquarters in Prague. Techniline’s key management will continue with the company.
“Cramo will now reach the leading position in the rapidly growing and well-developed Czech rental market, while also getting an entry into Slovakia, where rental penetration is still quite low,” said Jarmo Leasanen, senior vice president of Cramo. “Techniline’s long experience and strong customer base will support Cramo in continuing its fast growth in Central and Eastern Europe.”
Cramo also signed an agreement to acquire SIA Tapeks Noma in Latvia. Established in 2003, Tapeks Noma has 16 branches in Latvia, offering a wide range of equipment rental services. The company had revenue of €4 million in 2007 (about U.S. $6.2 million).
“Even though we see some slowdown in the residential construction sector in Latvia, the equipment rental sector is still growing rapidly because of fairly low rental penetration,” said Leasanen. “Through this acquisitions, Cramo will become the second-largest rental services provider in the Latvian market. With some 54 depots in the Baltic countries, Cramo has a very strong market coverage in the Baltic region.”