Ferronordic expands network in Germany by acquiring workshop in Bingen
Ferronordic has acquired Truck Center Krämer GmbH, an authorised Volvo and Renault Trucks workshop in Bingen, Rhineland Pfalz. The acquisition is in line with Ferronordic’s strategy to grow and expand its service network in Germany. The investment amounts to approx. SEK 66m (*EUR 6.4m).
Truck Center Krämer GmbH operates an authorised workshop for Volvo and Renault trucks in Bingen, between Bad Kreuznach and Mainz in Rhineland Pfalz. The workshop is located at the intersection of the A60 and A61 highways, connecting the Netherlands and Belgium with the German autobahn network. In addition, Truck Center Krämer runs two smaller workshops in Simmern and Kirn, Rhineland Pfalz. The company has 26 employees. The company operates in a strategic area with a significant population of Volvo and Renault trucks, which is important for growing Ferronordic’s aftermarket business in Germany.
In 2019 and 2020, Truck Center Krämer had an average annual revenue of approx. SEK 54m with an estimated normalised operating margin of approx. 10%. The expected purchase price for the business amounts to SEK 28m, based on SEK 9m of expected net asset value and SEK 19m of goodwill. Ferronordic has also acquired the real estate where the business in Bingen is operating for a purchase price of SEK 38m. The real estate of the smaller workshops in Simmern and Kirn are not included in the transaction.
Truck Center Krämer will be operated as a separate business during an interim period and will be integrated into Ferronordic’s German business during 2022.
Lars Corneliusson, Ferronordic’s CEO, comments: “With the acquisition of Truck Center Krämer, we add another strategic location to our network. A high-quality network of workshops in strategic locations, supplemented by mobile service, is important for improved customer satisfaction and increased market shares of Volvo and Renault Trucks in Germany. We look forward to welcoming all Krämer employees to Ferronordic and working together to build a leading service and sales company”.
*Amounts in EUR have been converted to SEK according to the exchange rate on 29 November 2021.
Ferronordic is a service and sales company in the areas of construction equipment and trucks. It is the dealer of Volvo Construction Equipment, Sandvik Rock Processing Solutions and certain other brands in all of Russia and Kazakhstan, aftermarket partner of Volvo Trucks and Renault Trucks in part of Russia, and dealer of Volvo Trucks and Renault Trucks in part of Germany. The company also offers contracting services where it owns and operates equipment to carry out works for customers. Ferronordic began its operations in 2010 and now has approx. 100 outlets and approx. 1,800 employees. Ferronordic’s vision is to be regarded as the leading service and sales company in its markets. The shares in Ferronordic AB (publ) are listed on Nasdaq Stockholm. http://www.ferronordic.com/
The information was submitted for publication on 30 November 2021, 09:00 CET.
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