15.03.2012

Cramo sells cabin businesses in Finland

International rental company Cramo has sold two of its Finnish modular space businesses to Profipri Oy and Randum Oy, both of which are controlled by MB Funds.

The deal includes cabin manufacturer Cramo Production and Cramo Finland’s customised modular space rental business.
Cramo Production is the leading producer of modular space systems/cabins and industrial halls in Finland. The company has 160 employees and revenues of €26 million.

The customised modular space rental business provides units which have been customised to the specific needs of customers, mainly in the public and industrial markets. This part of the cabin business generated around €5 million last year.

The disposal follows Cramo’s earlier sale of a portfolio of customised modular space units in Finland back in 2010 and will end the company’s participation in this market. It also supports its strategy of not being in the manufacturing business, something it considers to be a non-core activity.

Ossi Alastalo, Cramo’s senior vice president of fleet management and modular space will leave the company to become managing director of the purchasing companies.

The deal should result in a capital gain of around €3 million, which it will take in the first quarter, with the deal expected to complete by month end. The parties have agreed not to publish the purchase price.

Cramo chief executive Vesa Koivula said: “The divestment of these two businesses releases management resources and capital for our core modular space operations. According to our strategy, we continue the further development of the standardised modular space rental business and its geographical expansion. In the past few years, Cramo has invested a lot in developing new standardised modular space solutions and in expanding this business within the Nordic countries and in Central and Eastern Europe. I am pleased that we reached an agreement with MB Funds, which possesses excellent resources to further develop the modular space production and customised modular space rental businesses”.

Juha Tukiainen, a partner of MB Funds added: “This acquisition provides MB Funds with an interesting opportunity to enter the customised modular space rental business. With its well-established market position and highly motivated staff, the production facilities enable us to concentrate on the further development of customised modular space solutions. We have plans to develop this business forward both in Finland and internationally. We also look forward to developing a long-term relationship with Cramo within modular space manufacturing”.