05.11.2007

Cramo takes Skanska DK

Cramo the Finnish based international rental company has purchased the rental assets of Skanska Denmark.

The deal includes the existing machine fleet and related external rental contracts, plus a transfer of all associated employees.

The transaction is part of Skanska’s announced intention to divest itself of its construction business in Denmark. Cramo estimates that the acquisition will provide an additional annual rental volume of at least €13.5 million.

As part of the deal, the two companies have also signed a pan-Nordic cooperation agreement.

Göran Carlson, deputy CEO of Cramo said: "This agreement is very valuable to both parties since it will strengthen our relationship on a group level. The pan-Nordic agreement can add substantial volumes annually for Cramo. The acquisition in Denmark will accelerate Cramo's efforts to continue take an active part in the consolidation of fairly fragmented market."

Skanska rental Denmark has locations Aarhus, Odense and Taastrup with a fleet of some 3,000 machines of all types. Barely 10 percent of the Skanska activity is with external customers.

The purchase price has not been disclosed.

Cramo has been expanding rapidly in Denmark with six new depots opened this year, bringing its total to 16 locations.

Ole Wamsler, managing director of Cramo’s Danish business said: "The cooperation between us and Skanska has developed very positively and we know the organizations and its customers well, acquiring Skanska's equipment rental operation is of strategic importance to our operation as it gives us both equipment and specialised competencies. Especially in the field of cranes, hoists, heavy construction equipment and security equipment.”

Vertikal Comment

Cramo purchased Skanska’s modular space (cabin) rental division back in 2004 and this latest deal is a natural extension. However with Skanska running down its construction business in Denmark the revenue gains from Skanska will only be of interest in the short term.

However, it does give the company a lot of well maintained and professionally operated equipment of which around 90% is already at work within Skanska. One assumes that the Skanska construction staff will take up posts with other companies and carry the relationship with Cramo to their new employers.

Skanska as with a number of Nordic contractors, operates a massive fleet of equipment, which it also offers for rent to outsiders. One wonders it is reconsidering shifting towards outsourcing its equipment needs in its other markets. If so Cramo looks to be well placed to benefit from such a move.