03.12.2018

Ramirent to quit Denmark

Ramirent is to sell its Danish rental business to G.S.V. Materieludlejning, Denmark's largest equipment rental company.

The deal values the Danish business at around €33 million. The closing is expected to take place in the start of the new year. Annual revenues are in the region of €41 million and looks as though it might achieve an operating profit this year of around €4 million. Ramirent Denmark's 130 employees will remain with the business.

GSV operates from 16 locations throughout Denmark with a rental fleet that includes a wide range of powered access, mastclimbers and scaffold, as well as earthmoving equipment and cabins. It was founded in 1964 by three individuals - Grunnet, Svendsen and Vaskær - thus the name. Since then it has merged with or acquired a number of other companies including Corona. The current business was created when it was acquired by private equity firm CataCap and Danish pension fund Danica along with French Access Capital Partners, along with Pitzner Materiel, with CataCap becoming the majority shareholder of the combined company, while senior GSV managers retained a minority stake.
Revenues last year were dk844 million (€113 million) - slightly lower than for 2016 - with a pre-tax profit of €63.9 million (€8.5 million) slightly higher than in the previous year. It currently employs around 400.

Ramirent chief executive Tapio Kolunsarka said: "I am confident that our Danish team, that has made a respectable turnaround in profitability in recent years, will find a good, long-term home as part of G.S.V. At the same time Ramirent can focus on its strategy to seek profitable growth capital-efficiently in its core equipment rental business.

Dan Vorsholt chief executive of G.S.V. added: “G.S.V has grown significantly over recent years and by acquiring Ramirent in Denmark we continue to increase our relevance to customers and further strengthen our business. We look forward welcoming the Ramirent employees into the G.S.V. family."
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Dan Vorsholt

Vertikal Comment

Denmark has been a tough market for the two big Finnish rental groups for quite some time. It is a well developed but difficult market with high costs and keen prices. While this reduces Ramirent’s coverage in the Nordic region it probably makes sense. The company might be better served by forming a close working relationship with a company such as GSV.

The move follows Cramo’s exit from the mainstream Danish equipment rental market in July 2017 See Cramo sells Danish rental business to Loxam.

The deal probably makes sense financially - the only other move would have been to acquire a company such as GSV - but this mover should free up some management resources for expansion elsewhere.