Cramo will focus on Modular Space in Denmark by di

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Posted On: 07/14/2017 3:00:21 AM

Posted By: News Desk 2018

Cramo will focus on Modular Space in Denmark by divesting its Danish Equipment Rental operations

Vantaa, Finland, 2017-07-14 08:45 CEST (GLOBE NEWSWIRE) -- Cramo Plc Stock Exchange Release 14 July 2017, at 9.45 am (EET)

Cramo will focus on Modular Space in Denmark by divesting its Danish Equipment Rental operations

Cramo Group will focus its business in Denmark on Modular Space and therefore divests all its assets in Danish Equipment Rental operations to Loxam A/S. This step is fully in line with Cramo’s strategy to strengthen its position in markets where the company has a market leading potential. In 2016, sales of Danish Equipment Rental operations amounted to DKK 149 million (EUR 20 million) and comparable EBITA DKK 4.6 million (EUR 0.6 million). The enterprise value of the transaction is approximately EUR 25 million. The transaction will have a positive cash flow effect of approximately EUR 24 million at closing of the transaction. Cramo will recognise one-time capital loss of approximately EUR 1 million in the third quarter result.

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 the buyer. Employees in the divested part of operations will be offered new employment with the buyer. Currently, Cramo has 80 employees and seven depots 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”, says Leif Gustafsson, President and CEO of Cramo Group.

Gérard Déprez, President of Loxam states: “I am pleased to welcome Cramo’s talented and experienced employees into Loxam. Together we will join forces to provide our customers with the best possible service, and build a reference and leading company in the Danish equipment rental market.”

The transaction is subject to closing conditions and is estimated to be completed by 31.8.2017.

CRAMO PLC

Leif Gustafsson

President and CEO

Further information: Mr Leif Gustafsson, President and CEO, tel: +358 10 661 10 Mr Aku Rumpunen, CFO, tel: +358 10 661 10, +358 40 556 3546 Mr Mattias Rådström, SVP, Communication, Marketing and Investor Relations, tel: +46 70 868 7045

Distribution: Nasdaq Helsinki Ltd. Major media www.cramogroup.com

Cramo is Europe’s second largest rental services company specialising in construction machinery and equipment rental and rental-related services as well as the rental of modular space. Cramo operates in fifteen countries and in 324 depots. With a group staff around 2,600, Cramo's consolidated sales in 2016 was EUR 712 million. Cramo shares are listed on Nasdaq Helsinki Ltd.

LOXAM is the leading equipment rental Company in Europe with unaudited proforma consolidated revenue of €1330 million in 2016 and approximately 7,400 employees. LOXAM’s network of more than 740 branches extends over 12 countries in Europe (France, Germany, the United Kingdom, Ireland, Belgium, Switzerland, Spain, Portugal, Luxemburg, the Netherlands, Denmark and Norway) as well as in the Middle East, Morocco and Brazil.