France-based Loxam, Europe’s largest equipment rental company has agreed to make a cash tender offer to purchase Ramirent, an equipment rental company for the construction, industry and services sectors with operations in Scandinavia, Central Europe and Eastern Europe and a turnover of €712 million in 2018. It employs 2,900 staff in nine countries through a network of 294 branches. Loxam will offer Ramirent’s shareholders a cash consideration of €9 per share, valuing Ramirent’s equity at approximately €970 million. This tender offer has received the unanimous support of the Board of Directors of Ramirent and its major shareholders: the board of directors has recommended this tender offer to the shareholders of Ramirent. The offer is about 65 percent higher than Ramirent’s value at the close of trading on June 7.
Ramirent operates in Finland, Sweden, Norway, Estonia, Latvia, Lithuania, Czech Republic, Slovakia, and Poland.
Loxam is Europe's largest equipment rental company, with more than 700 branches in 13 countries and more than 8,000 employees. The company posted revenue of 1.48 billion euros in 2108 (about U.S. $1.675 billion.)
Both companies would benefit from a larger scale and higher resilience on the back of a more diverse international exposure, making their respective businesses balanced for the benefit of their customers, employees and financial stakeholders. Active on similar equipment rental markets, and being geographically complementary, both leaders share the same values: safety, workforce commitment, leadership and sustainability, the companies said in a statement.
Upon completion of the transaction, the ambition of the enlarged group would be to continue its organic growth in the countries where it operates, and to provide high quality and proximity services to its clients.
“The combination of Ramirent and Loxam represents a unique opportunity to build a truly pan-European leader in the equipment rental market,” said Gérard Déprez, president and CEO of Loxam. “Loxam has known, followed and highly regarded Ramirent for a number of years, and appreciates its experienced management team and employees, as well as its strong positions in all the markets where it operates. The acquisition of Ramirent is consistent with Loxam’s strategy to build a geographically diversified business, with improved scale, able to better serve its clients. The combination brings together two strong and financially resilient groups which are fully complementary.
“Loxam appreciates the unanimous support from the board of Ramirent and its largest shareholders for its tender offer and Loxam is looking forward to working with the Ramirent's management team and employees and continuing to build with them a successful business.”
“Founded in 1955, Ramirent has developed into an equipment rental company with leading market positions in the Nordic region and in Eastern Europe,” said Ulf Lundahl, chairman of Ramirent’s board. “The board of directors is proud of what Ramirent has accomplished and we are thankful for the achievements of the management team and the engagement and hard work of all employees.
“The offer from Loxam will create a truly pan European equipment rental company with an extensive offering, a well-diversified business mix and a platform for future growth to serve both client needs and employee development. Furthermore, the price offered by Loxam presents an attractive cash premium to our shareholders. With a history of making acquisitions and integrating companies I believe Loxam offers a good home for Ramirent.”
Tapio Kolunsarka, CEO of Ramirent added: “Loxam’s offer, at a substantial premium to the current share price, proves their strong belief in Ramirent’s future value creation potential. I am confident that we have the possibility to further accelerate growth and development and that we add important Nordic and Eastern European dimension to Loxam’s international presence.”