13.11.2009

Rami acquires Rakennus-Otava’s equipment division

Finnish based Rami Rent has acquired the equipment division of Finnish construction company Rakennus-Otava Oy, a subsidiary of the Lemminkäinen group.

The deal includes a five year rental agreement between the two companies.

Kari Aulasmaa, Rami’s senior vice president for Finland and Europe East, said:“Acquiring customers’ machinery operations is an important part of our strategy. We are very happy to get the opportunity to strengthen and develop our co-operation with Rakennus-Otava and the Lemminkäinen Group”.

Founded in 1987, Rakennus-Otava has been part of the Lemminkäinen Group since 1990. It operates in the Jyväskylä area as well as in the northern and central parts of Finland.

It is active in new construction, renovation work on both residential and business premises as well as industrial production sites. In 2008 the company had annual sales of €40 million.

The transaction price for the deal has not yet been disclosed.

Vertikal Comment

Deals such as this are ideal for companies like Rami and are part of the long term trend towards increased rental penetration and outsourcing of equipment needs. It is during times like this that most progress can take place, boding well for when the economic upturn begins to generate greater volumes.

One assumes that the price for the equipment that Rami has acquired with the deal was at most net book value.