STOCKHOLM, Sweden — Two major European rental companies have decided to merge to create one of Europe's five largest rental companies. Rakentajain Konevuokraamo Oyj and Cramo Holdings, the Dutch parent company of the Cramo Group announced the merger through a share exchange offer by RK. The combined company will have particular strength in Finland, Sweden and Estonia, and good coverage in Norway, Denmark, the Netherlands, Latvia, Lithuania, Poland and Russia.
The combined company's annual pro forma volume in 2004 was about 293 million Euros, around U.S. $350 million. The newly combined company expects to create annual synergies of about $6 million by 2007. The combined company hopes to grow further internationally within general equipment rental and modulars, and RK's strong position in Finland and Eastern Europe will be complemented by Cramo's strong position in the Nordic and Baltic markets.
The completion of the transaction is subject to approval by the competition authorities in Poland and Estonia and RK's shareholders.
