30.11.2017

Rami to quit cabin rental?

Finnish international rental group Ramirent is considering exiting the cabin rental/temporary space business to focus on its core equipment rental operations as part of a new strategy overhaul which will include the restructuring of its under performing Danish operation.

The company offers cabins etc in Sweden, Norway, Finland and Denmark and it generates around €30 million. Clients include schools, health centres along with the usual site huts and temporary office space.

Chief executive Tapio Kolunsarka said: “In line with Ramirent’s renewed Group Strategy, we will focus on growing capital efficiently in our core general equipment rental business with disciplined development of rental or related businesses that are clearly synergistic to our core business. This is why we have initiated a process to assess strategic options, including a potential sale of our Temporary Space business which has limited customer and operational synergies with our core.”

Vertikal Comment

This looks like a logical step for Ramirent, and is the polar opposite of the strategy currently being followed by fellow Finnish rental group Cramo, which recently acquired a large Danish temporary space business - Just Pavilion - and then sold the rest of its Danish rental business to Loxam. You would think that a ‘strategic’ deal or swap might be possible between the two which have worked together in the past when they pooled their Russian operations to create Fortrent.

Alternatively French international rental group Kiloutou is on the acquisition trail and is interested in this market, having acquired Landrau C.E.B in France earlier this month. With new shareholders and €500 million of new cash to fund acquisitions it could be a prime candidate to acquire this business.

One could be forgiven for thinking that Cramo and Ramirent - which cover a similar geographic area - have already forged a strategic alliance between them, in which each focuses on a different part of their businesses. A bit like old fashioned central state planning.

It will be very interesting to see who finally snaps up Rami’s cabin business - I know who my money is on.