European Rental Giant Loxam Acquires Cramo’s Danish Equipment Rental
Loxam, Europe’s largest equipment rental company is continuing its international acquisition spree by acquiring the equipment rental assets of Cramo Group’s Denmark operations. Cramo, also one of Europe’s largest equipment rental players with operations in 15 countries, is attempting to strengthen its position in markets where it is a market leader. In 2016, Cramo’s Danish equipment rental operations amounted to about €20 million. Cramo Group has elected to focus its Danish business on modular space rentals.
Loxam earlier this year acquired U.K.-based international aerial rental company Lavendon as well as Hune Group a Spanish rental company with 35 branches in Spain in addition to locations in Portugal, France, Saudi Arabia and Colombia.
The enterprise value of the Cramo acquisition is about €25 million. The transaction is an asset deal in which all assets belonging to Cramo’s Equipment Rental operations in Denmark, including rental equipment, inventory, customer contracts and depot premises lease contracts are acquired by Loxam. Employees in the divested part of operations will be offered new employment with the buyer. Currently, Cramo has 80 employees and seven branches in Denmark within equipment rental.
“The decision to divest our Equipment Rental in Denmark is in line with Cramo’s new strategy ‘Shape and Share’, which aims towards a leading position in all Cramo markets. In the future, we will focus our investments on the potential in our Modular Space offering in Denmark,” said Leif Gustafsson, president and CEO of Cramo Group.
Cramo, for its part, recently signed an agreement to acquire the assets of Just Pavillon, a modular space rental company in Denmark, which has an inventory of 360 modular units mainly used in schools.
