16.01.2018

German acquisition for Cramo

Finnish international rental group Cramo is to acquire German construction site logistics company KBS Infra and its subsidiaries in an all share purchase deal.

KBS was founded in 2004 and offers a wide range of logistics services for large job sites, including site set up, cabin rental, electrical equipment, hoist rental, waste disposal and security. It has annual revenues in the region of €35 million and employs 180 across four locations. KBS founder and managing director Oliver Karrié will remain with the business.

One attraction for Cramo is that KBS is typically the first to arrive on site and one of the last to leave, providing real opportunity for cross selling. Its rental fleet includes around 6,000 container based hurts/cabins and site electrical equipment. The temporary accommodation fleet will significantly boost Cramo’s share of this market in Germany.
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A KBS hoist

Dirk Schlitzkus, executive vice president Cramo Central Europe said: “We look forward to work together with the capable team in KBS Infra, and are truly happy of being able to acquire such a reputable and well performing company led by knowledgeable management. KBS Infra is a service focused construction site logistics company with a lot of important construction related project business know how among its staff. The company completes Cramo's total rental offering in Germany and gives us an even better position to compete in the German market.”

Cramo chief executive Leif Gustafsson added: “The acquisition is fully in line with our Shape and Share strategy and will strengthen Cramo's position in the important German market and supports our ambitions to grow profitably. It expands our business model and also enables the development of new customer solutions.”

Karrié said: “I am happy that the company that I founded 14 years ago has found a good new owner with Cramo. I look forward to continuing to develop and grow the business together with the excellent people at KBS Infra as well as with our new colleagues at Cramo.”

The transaction is subject to merger control clearance from Germany’s Bundeskartellamt/ competition authority, but should close by the end of this quarter.

Vertikal Comment

This looks like a very good move for Cramo, giving its German operation, which has been challenging at times a major boost. Cramo ,moved into Germany in early 2011 with the acquisition of Theisen Baumaschinen, which formed the core of what is now Cramo Central Europe. KBS appears to be a dynamic, fast growing, well managed business that adds another dimension and more depth to what Cramo typically does.

Cramo for many years referred to outsourcing, rather than equipment rental, the addition of KBS which is a true outsourcing business for construction sites, could take Cramo into a new business model, that the company has dabbled with in the past, but not adopted on a widespread basis. You can be sure that a few other large rental companies will be watching to see how this merger develops.