24.03.2008

Cramo buys in Latvia

Finnish based rental company Cramo has agreed a deal to acquire 100 percent of the equity in SIA Tapeks Noma a rental business in Latvia owned by the Tapeks group.

The Tapeks Group is, one of Latvia's leading suppliers of general construction equipment and building machinery, and has operated an equipment rental fleet through Tapeks Noma.

A co-operation agreement will also be signed between Cramo and the Tapeks Group, which includes operational and marketing cooperation. The sellers in the transaction are the Tapeks Group and six individuals.

Established in 2003, Tapeks Noma provides a wide range of equipment through 16 depots across Latvia. Revenues in 2007 were €4 million. The company employs 70 people who will continue to work in the company, within the Cramo group, including its Key managers.

During 2008 Tapeks Noma's depots will be merged with Cramo's existing network and rebranded as Cramo.

Jarmo Laasanen, senior vice president of Cramo Other Europe said:
"We are glad to welcome Tapeks Noma into the Cramo Group. Even though we see some slowdown in the residential construction sector in Latvia, the equipment rental sector is still growing rapidly due to the fairly low rental penetration.

“Through the acquisition Cramo will become the second largest rental services provider in the Latvian market. Thereafter, with a total of some 54 depots in the Baltic countries, Cramo has a very strong market coverage in the Baltic region."