October, 19. 2005
Combination of Rakentajain Konevuokraamo and
Cramo creates a leading Pan-European rental service company
Rakentajain Konevuokraamo Oyj ("RK") and Cramo Holding B.V., the Dutch parent company of the Cramo Group ("Cramo"), have decided to combine their operations through a share exchange offer by RK. The combination will create one of the leading European rental services companies, whose core business areas will consist of general equipment rental as well as rental and sale of modulars.
The combined company ("Combined Company") will be among the five largest European rental services companies with leading positions in Finland, Sweden and Estonia, and a good coverage in Norway, Denmark, the Netherlands, Latvia, Lithuania, Poland and Russia.
The Combined Company will have a solid base for continued international growth in most existing markets, and especially in Eastern Europe and Russia. Its annual pro forma turnover in 2004 amounted to approximately EUR 292.8 million with an EBITDA of approximately 78.1 million. The Combined Company will employ 1,634 people. The transaction is expected to create annual synergies of approximately EUR 5 million, which will materialize in full as of 2007.
The combination of RK and Cramo will create one of the largest rental companies in Europe, whose core business areas will be general equipment rental, and rental and sale of modulars. The Combined Company will have a leading market position in Finland, Sweden and Estonia and a good coverage in the other Nordic and Baltic states, and some Eastern European countries. The combination forms a solid base for implementing a growth strategy in both new and most existing markets, including Eastern Europe and Russia.
The Combined Company is an industrial services company, meeting the machinery, equipment and modular space needs of its customers in industry, construction, retail, and the public sector by providing easy accessibility, and actively developing new concepts to satisfy short and longer term needs of customers. The Combined Company will operate in 10 countries where it has a network of 252 rental depots. Pro forma sales in 2004 amounted to EUR 292.8 million and during the first six months in 2005 to EUR 152.4 million. The number of employees was 1,634 as at 30.6.2005. The Combined Company will be headquartered in Vantaa, with operational centers in Vantaa and Kista.
For further information:
Vesa Koivula, CEO of RK
tel. +358-9-89481 or +358-40-5105710
Göran Carlson, CEO of Cramo
tel. +46-8-6235402 or +46-708-746556
Helsinki Stock Exchange
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