Ramirent Plc Inside information April 8, 2019 at 09:45 EET
Ramirent Plc has signed an agreement to acquire Stavdal AB, a general equipment rental company operating in 11 cities in Sweden and in Oslo area in Norway. The enterprise value of the transaction is approximately EUR 158 million. The debt-free purchase price will be settled with a cash consideration of EUR 124 million and a conveyance of 5,848,341 Ramirent shares to the current owners of Stavdal. The transaction is subject to customary closing conditions and an approval from competition authorities. The closing is expected to take place at the latest by the end of Q3 2019.
The EV/EBITDA-multiple of the transaction is 5.6x. Taking into account the estimated annual synergies of EUR 6 million, the post-synergy EV/EBITDA multiple of the transaction is 4.6x. The full run-rate of synergies is expected to be achieved by the end of 2020.
In 2018, Stavdal had a revenue of EUR 79 million and an adjusted EBITDA of approximately EUR 28 million. The company currently employs approx. 280 rental professionals who will join Ramirent as per closing of the transaction. Stavdal operates modern fleet and its rental offering includes heavy and light machinery, lifts, modules, scaffolding and fall protection, power and heating equipment and hoists.
The acquisition is expected to be strongly cash-generative and the estimated cumulative free cash flow from the deal in 2020-2023 is EUR 50-70 million. With this acquisition, Ramirent will strengthen its position in the long-term attractive Swedish rental market, particularly in the growing metropolitan areas of Gothenburg and Stockholm. After completing the divestments of over EUR 80 million in the past year, this transaction is perfectly in-line with Ramirent’s strategy of capital-efficient profitable growth in the core business.
“Stavdal has an impressive track record of performance and customer intimacy and we are privileged to be able to combine forces to form the market-leading player in Sweden. The complementary strengths of our companies are undisputable. We are excited to leverage Stavdal’s competence and strong position, especially in Lifts as well as in Gothenburg and Stockholm regions, to make Ramirent an even stronger company for its customers. I want to personally welcome Stavdal personnel to Ramirent. Together we can provide unbeatable service experience to all our current and future customers,” says Tapio Kolunsarka, President and CEO of Ramirent Plc.
“Becoming a part of Ramirent means great opportunities for all parties. The companies complement each other’s strengths and create new opportunities for both customers and employees. Together we will have more resources, endless competences and a fantastic range of services connected to our machines, as well as new digital services. The both companies share similar values and strongly believe in sustainable rental, which makes this a perfect match,” says Mikael Olsson, CEO of Stavdal AB.
Guidance for 2019 unchanged
Ramirent’s guidance for 2019 as well as its long-term financial targets remain at this point unchanged. Transaction’s impact on these will be assessed after the closing.
Extraordinary General Meeting
After closing of the transaction, Ramirent’s Board of Directors will propose to hold an Extraordinary General Meeting where Mats Rydhede, the founder of Stavdal, is proposed to be elected as a member of Ramirent’s Board of Directors for a term continuing until the end of the next Annual General Meeting.
Adjusted key financials of Stavdal AB
| MEUR | 2016 | 2017 | 2018 |
| Revenue | 60 | 69 | 79 |
| EBITDA | 20 | 23 | 28 |
| EBITDA % | 34 % | 33 % | 36 % |
| EBIT | 9 | 11 | 14 |
| EBIT% | 14 % | 15 % | 18 % |
Note: Exchange rate applied EUR/SEK 10.427
Audiocast and conference call for investors, analysts and the media
A briefing for investors, analysts and the media representatives will be arranged today, April 8, 2019 at 13:00 Finnish time (EET) through a live audiocast viewable at combined with a conference call. The briefing will be hosted by CEO Tapio Kolunsarka and interim CFO Jonas Söderkvist.
The dial-in numbers are +358 9 8171 0310 (FI), +44 3333 000 804 (UK), +46 8 5664 2651 (SE), +1 631 913 1422 (US). Numbers for other countries can be found from . Participant code for conference call is 12818246#. A recording of the audiocast and teleconference will be available at .
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For further information, please contact:
Tapio Kolunsarka, President and CEO of Ramirent Plc, contacts through Communications, tel. +358 20 750 2866. Tapio will be best available at 10-12 EET.
Ramirent is a leading service company offering equipment rental for construction and other industries. Our mission is to help our customers gear up on safety and efficiency by delivering great equipment and smooth service with a smile. We have 2,905 co-workers at 294 customer centers in northern and eastern Europe. In 2018, Ramirent Group net sales reached a total of EUR 712 million. Ramirent is listed on the Nasdaq Helsinki (RAMI). In Sweden Ramirent has 800 co-workers and 75 customer centers.
Ramirent – Gear Up. Equipment rental at your service
Stavdal is one of the leading general equipment rental companies in Sweden. The company operates modern fleet including lifts, construction machines, construction equipment and modules. The company also offers related services and training. In 2018, Stavdal had revenue of SEK 819 million and approx. 280 employees. Read more at
Distribution: Nasdaq Helsinki, the main media, www.ramirent.com