29.05.2008

Riwal moves into Spain

Riwal the Dordrecht based aerial lift and telehandler rental company has acquired a 70 percent stake in the Valencia based Spanish rental company Clem.

With a fleet of around 2,000 units, 12 locations and around €25 million revenues the acquisition gives Riwal a significant market position in the dynamic Spanish market.

Clem emerged out of a company founded in 1945 by Jose Noguera and is managed by the third generation of the family which will retain a 30 percent holding in the business. No details of the transaction have been revealed.

Jose Jaime Noguera, the current owner and Riwal’s chief executive, Dick Schalekamp will sit on the Clem board of directors. No decision has been announced on whether there will be a name change or not, with the Clem name being so well known, it is unlikely.
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Javier Gómez Gonxzález of Clem

Javier Gómez, Clem’s general manager, said: “I am very confident about market developments, the current management team wants to make Grupo Clem a leader in its sector. Our goal is not just to do things better, but to develop and offer different services, some of which are operational now”.

“We think that Spain lacks infrastructures in terms of quality and quantity in comparison to other European countries and Clem is the perfect vehicle to make the most of this opportunity, given its reputation and the quality of its products and services. Our strategy, however, is not to increase the number of units but to be leaders in terms of service quality and results.”

Schalekamp, said: “With this acquisition, Riwal will enter the Spanish market and strengthen its European coverage, with the aim of becoming one of the biggest operators on the international access equipment market.”

Vertikal Comment

This deal has been “in progress” for many months, and has involved the consolidation of a number of separate Clem group companies into a single corporate being. It gives Riwal a major stake in yet another market, cementing its position as the second largest aerial lift rental company in Europe.

Riwal has worked with Clem on a re-rent basis for a along time so the managers of the two businesses know each other well and have a high level of trust as well as a strong working relationship that goes well beyond the normal in such an acquisition.

Riwal has built its business on personal relationships and finding like minded local managers which generally hold a stake in the business. It prefers in fact to choose new markets by the following a key person rather than deciding on a market and then looking for a manager.

Add to this the fact that the Clem fleet already has a similar profile to that or Riwal, being mostly JLG and Holland Lift, and the absorption into Riwal should be a breeze.

With the Spanish market currently in the doldrums, but likely to bounce back sooner than most people think, not to mention the significant consolidation that has occurred there, this is likely to prove to be a great time to buy into the market.