Ramirent Plc, Press Release, 7 March 2013
Vantaa, Finland, 2013-03-07 12:30 CET (GLOBE NEWSWIRE) —
Ramirent and Cramo have received approval from the competition authorities and successfully closed the transaction to form a joint venture operating under the brand name “Fortrent” in Russia and Ukraine.
Fortrent is a leading equipment rental services company in the Russian and Ukrainian markets with annual net sales of over EUR 52 million and an EBITDA margin of circa 35%. The combined entity has approximately 400 employees and 22 own rental depots. The operational head office will be located in Saint Petersburg.
“Naming Fortrent represents an important milestone,” said Anton Artemiev, chairman of the board. “The name Fortrent reflects the strong player that is created by this transaction and that has the capabilities to present a compelling value proposition for its customers and take the lead in developing further equipment rental in these markets.”
“Fortrent will help customers to manage their rental fleet needs in an efficient, compliant and cost-effective way. Increasingly, customers are looking for a single expert provider who can help plan and manage their rental equipment use across the full project cycle. We are delighted to bring our combined fleet capacity and expertise to offer large equipment rental solutions to customers in the Russian and Ukrainian markets”, says Magnus Rosén, CEO and President, Ramirent Plc.
“Through Fortrent we have a strong role as the leading equipment rental company in the vast and growing Russian and Ukrainian market. At the same time the partnership with Ramirent reduces the investment needs as well as the risks involved to benefit from this big opportunity”, says Vesa Koivula, CEO and President, Cramo Plc.
The Chairman of the Board of Directors of the joint venture company is Mr Anton Artemiev, who has extensive Russian and international business experience. Mr Grigory Grif has been appointed General Director of Fortrent (previously Country Manager, Ramirent Russia and Ukraine).
Fortrent, owned and controlled 50/50 by the two companies, has been created as a Finnish limited liability company. To reach equal ownership, Cramo pays to Ramirent a cash contribution of approximately EUR 9.2 million in connection with the closing of the transaction.
The new company will be accounted for by the equity method in Ramirent’s financial statements, where the share of the net profit of the joint venture is reported as part of operative profit. As of the formation of the joint venture, net sales from the operations in Russia and Ukraine will no longer be reported as part of Ramirent Group’s net sales. The transaction is expected to have a positive, but not material, net contribution to Ramirent’s profit in 2013.
Vantaa, 7 March 2013
RAMIRENT PLC
Magnus Rosén
President and CEO
FURTHER INFORMATION:
Magnus Rosén, President and CEO, tel. +358 20 750 2845, magnus.rosen@ramirent.com
Jonas Söderkvist, Chief Financial Officer, tel. +358 20 750 3248, jonas.soderkvist@ramirent.com
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www.ramirent.com
Ramirent is a leading equipment rental group delivering Dynamic Rental Solutions™ that simplify business. We serve a broad range of customers, including construction and process industries, shipyards, the public sector and households. In 2012, the Group’s net sales totalled EUR 714 million. The Group has 3,000 employees at 358 customer centres in 13 countries in the Nordic countries and in Central and Eastern Europe. Ramirent is listed on the NASDAQ OMX Helsinki Ltd.