Ramirent has signed an agreement to sell its Temporary Space business to Procuritas Capital Investors VI for an enterprise value of approximately EUR 53 million. The transaction is estimated to close before the end of 2018 and is subject to customary closing conditions.
The divestment is in line with Ramirent’s strategy announced in November 2017, under which Ramirent will focus on capital efficient profitable growth in its core equipment rental business. When announcing its new strategy, Ramirent also stated its intention of exploring options for its Temporary Space business.
With operations in Sweden, Norway, Finland and Denmark, Ramirent’s Temporary Space business had sales of approximately EUR 30 million and an EBIT of EUR 3.5 million in 2017. Ramirent’s Temporary Space business offers high quality temporary premises for accommodation, schools, health centers and office spaces. Ramirent’s Temporary Space business has strong customer relationships especially in the public sector, in real estate and, the oil and gas sector.
The transaction is expected to result in a non-recurring expense related to non-current assets of approximately EUR 30 million. In addition currency translation differences in the equity will be booked through the income statement at closing. The transaction is estimated to impact in total 18 employees based in Sweden, Norway, Finland and Denmark. These employees will continue their employment in the sold business as per closing date of the transaction.
“We believe that this transaction will unleash the Temporary Space business to achieve its full potential under the ownership of Procuritas Capital Investors VI. Procuritas has a proven track record when it comes to taking businesses to the next level through their active ownership approach. For Ramirent, the transaction enhances our opportunities to pursue our capital efficient profitable growth strategy in the core equipment rental business,” says Mr Tapio Kolunsarka, President and CEO of Ramirent Plc. ”We will, however, continue to manufacture and own construction site modules as part of our core rental offering.”
“We have followed the positive development in the Nordic market for temporary space solutions and believe that the underlying market fundamentals driving growth will continue going forward,” says Mr Oskar Lindholm-Wu, Director at Procuritas. “We see a great opportunity to grow Temporary Space further under a focused ownership with an improved customer offering, building on the position the business has taken in the Nordic markets.”
Mr Erik Fougner, Partner at Procuritas Capital Investors, adds: “We look forward to team up with the Temporary Space management team and embark on our joint future journey, supporting them in their future success.”