Ramirent has decided to exit the Hungarian market and has agreed to sell its operations in Hungary to the Danube SCA Sicar, a private equity fund.
Under the agreement Ramirent is selling its entire Hungarian operation with forecasted Net Sales for 2013 of EUR 7 million and employing 83 persons at 13 customer centres. The sale price is not disclosed and will be paid partly as an earn-out based on financial performance of the company in 2013 and 2014. The transaction will result in a non-recurring cost due to foreign exchange translation differences of approximately EUR 2 million, which will be recognised in other operating expenses in the third quarter. Completion of the transaction is expected during the third quarter of 2013.
Magnus Rosén, CEO and President, Ramirent Plc, said: “This divestment is in line with Ramirent’s aim to strengthen its strategic focus on higher growth opportunities in Ramirent’s core markets in the Baltic Sea region.”
Ramirent’s history in Hungary dates back to 2003, when Ramirent made a greenfield entry into Hungary. Ramirent lead the consolidation of the market by acquiring the companies Gepbazis in 2003 and Agentrade-Plusz in 2005 and thereby became the leading equipment rental company in Hungary.