Ramirent to divest its Danish equipment rental business
Ramirent Plc Stock Exchange Release 3 December 2018 at 09:45 EET
Ramirent has signed an agreement to divest its Danish equipment rental business to G.S.V. Materieludlejning A/S, Denmark's largest equipment rental company. The enterprise value of the transaction is approximately EUR 33 million. The closing is expected to take place in the beginning of 2019 and is subject to customary closing conditions and approval of competition authorities.
Ramirent's 130 employees in Denmark will continue their employment in the sold business as per closing date of the transaction. The divested operations will be reported as discontinued operations in the fourth quarter 2018. The transaction is expected to have a minor impact on Ramirent Group's financial result.
"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," says Tapio Kolunsarka, President and CEO of Ramirent Plc.
"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," says Dan O. Vorsholt, CEO of G.S.V.
After the divestment, Ramirent has four segments and it operates in Sweden, Finland, Norway, Estonia, Latvia, Lithuania, Poland, Czech Republic and Slovakia. Ramirent also operates in Russia and Ukraine through 50% owned joint venture, Fortrent.
Jonas Söderkvist, interim CFO and EVP Group Business Development, Ramirent Plc, tel: +46 (0) 8 624 9502
Peter Ryttergaard, Deputy Chairman in G.S.V. and partner in CataCap, the majority shareholder of G.S.V. tel. +45 3020 3604
RAMIRENT is a leading service company offering equipment rental for construction and other industries. Our mission is to help our customers gear up on safety and efficiency by delivering great equipment and smooth service with a smile. We have 2,900 co-workers at 300 customer centers in northern and eastern Europe. In 2017, Ramirent Group sales reached a total of EUR 724 million. Ramirent is listed on NASDAQ Helsinki.
Ramirent - Gear Up. Equipment rental at your service
G.S.V. Materieludlejning A/S was founded in 1964 and is one of the oldest rental equipment companies in Denmark. G.S.V. is today majority owned by Danish private equity fund CataCap and has become the largest equipment rental company in Denmark with a wide product portfolio focused on light and heavy equipment, with and without drivers. GSV has 390 employees in Denmark and a turnover of EUR 115 million in year 2017.