European Rental Giant Loxam Acquires Cramo’s Danish Equipment Rental
Loxam, Europe’s largest equipment rental company is continuing its international acquisition spree by acquiring the equipment rental assets of Cramo Group’s Denmark operations. Cramo, also one of Europe’s largest equipment rental players with operations in 15 countries, is attempting to strengthen its position in markets where it is a market leader. In 2016, Cramo’s Danish equipment rental operations amounted to about €20 million. Cramo Group has elected to focus its Danish business on modular space rentals.
Loxam earlier this year acquired U.K.-based international aerial rental company Lavendon as well as Hune Group a Spanish rental company with 35 branches in Spain in addition to locations in Portugal, France, Saudi Arabia and Colombia.
The enterprise value of the Cramo acquisition is about €25 million. The transaction is an asset deal in which all assets belonging to Cramo’s Equipment Rental operations in Denmark, including rental equipment, inventory, customer contracts and depot premises lease contracts are acquired by Loxam. Employees in the divested part of operations will be offered new employment with the buyer. Currently, Cramo has 80 employees and seven branches in Denmark within equipment rental.
“The decision to divest our Equipment Rental in Denmark is in line with Cramo’s new strategy ‘Shape and Share’, which aims towards a leading position in all Cramo markets. In the future, we will focus our investments on the potential in our Modular Space offering in Denmark,” said Leif Gustafsson, president and CEO of Cramo Group.
Cramo, for its part, recently signed an agreement to acquire the assets of Just Pavillon, a modular space rental company in Denmark, which has an inventory of 360 modular units mainly used in schools.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.