Boels to Buy Cramo in $650 Million Equipment Rental Deal
Boels to Buy Cramo in $650 Million Equipment Rental Deal
(Bloomberg) -- Boels Verhuur BV is offering to buy all shares in Finnish construction-equipment rental company Cramo Oyj for 592 million euros ($650 million) in cash.
Cramo shares rose as much as 6.3%, the most since Nov. 5, when it announced that it had received a potential full takeover bid from an undisclosed suitor. The stock was up 4.9% after 30 minutes of trading in Helsinki on Monday.
The Dutch equipment rental company offered 13.25 euros a share, representing a premium of about 31% compared to the Cramo closing price on Nov. 4, according to a statement on Monday. Cramo’s board unanimously recommended shareholders accept the tender offer.
Boels and Cramo together would generate revenue of about 1.25 billion euros a year with one of the largest depot networks in Europe, the companies said.
“Our vision is to build a European leader in the equipment rental market,” said Boels Chief Executive Officer Pierre Boels. “Our companies know each other well and have a good fit both strategically and culturally.”
Cramo CEO Leif Gustafsson and major shareholders EQT Public Value Investments, Rakennusmestarien Saatio and Varma Mutual Pension Insurance Co. -- representing 18.9% of the outstanding shares and votes -- have undertaken to accept the tender offer, subject to certain customary conditions.
Earlier this year Cramo announced a spin off of its modular space business into a new company Adapteo.
“We have now reshaped the company, launched a new strategy, taken the right steps to improve performance and set the foundation to differentiate ourselves from the competition,” Gustafsson said.
Boels said it plans to use underwritten senior loan facilities for the deal, which are sufficient to finance the acquisition of all outstanding Cramo shares, refinance all outstanding debt from both companies, as well as pay for associated transaction costs.
The offer period will start on or about Nov. 25 and will expire in the first half of January.
To contact the reporter on this story: Leo Laikola in Helsinki at llaikola@bloomberg.net
To contact the editors responsible for this story: Kati Pohjanpalo at kpohjanpalo@bloomberg.net, Stephen Treloar, Christian Wienberg
©2019 Bloomberg L.P.