Inside information: YIT to sell equipment services to Renta and sign a cooperation agreement with Renta
YIT Corporation has agreed on the sale of the entire share capital of YIT Kalusto Oy, the company’s subsidiary providing in-house equipment services, to Renta Oy, a company operating in the equipment rental business. As part of the arrangement, YIT and Renta will sign a long-term cooperation agreement on the delivery of equipment services to YIT in Finland.
In addition to the share transaction, YIT sells to Renta the property used by YIT Kalusto Oy, located in Urjala, Finland. Prior to the share transaction, the specialised equipment related to YIT’s Infrastructure business and the personnel working with the business, will be transferred to YIT Infra Oy in an intra-group business transaction.
The enterprise value is EUR 37 million in total. The purchase price will be paid at the closing of the transaction. The estimated net cash inflow from the transaction is approximately EUR 30 million. The preliminary estimate of the gain on sale from the transaction is approximately EUR 10 million. The financial implications of the transaction will be specified at the closing. The share transaction between YIT and Renta is conditional to the approval by the Finnish Competition and Consumer Authority, and it is estimated to be completed by 30 June 2024.
In connection with the share transaction, 67 employees of YIT Kalusto Oy will transfer to Renta. Renta Group has operations in eight North European countries, 175 depots and over 2,000 employees.
“With the sale of our equipment services and the cooperation agreement, we can more strongly focus on our core business and ensure that we have access to a comprehensive range of equipment and the latest digital services. Already for several years, Renta Group has been YIT’s primary partner in delivering equipment in Finland outside of Southern Finland. The transaction will further deepen the partnership with Renta. The goal of the cooperation is to increase the efficiency in using equipment, optimise resources and progress sustainability using low-emission equipment. Our team working with equipment services will have better opportunities to develop their skills as part of a larger expert team. With the transaction, YIT improves its capital efficiency,” said Tuomas Mäkipeska, Chief Financial Officer, YIT Corporation.
”The acquisition of YIT’s equipment rental company and the long-term cooperation agreement with YIT significantly strengthens Renta’s operations in Finland. Renta and YIT have already had a successful cooperation for several years and through the acquisition the partnership is further broadened to cover entire Finland. YIT is an excellent partner for Renta for continued development of high-quality and sustainable services by leveraging digital solutions. YIT’s equipment rental company is known for high-quality services and we warmly welcome the transferring professionals to Renta,” said CEO Kari Aulasmaa, Renta Group Oy.
The transaction is part of YIT's transformation program, announced on 10 February 2023. One of the objectives of the program is to improve YIT’s capital efficiency. The company continues the strategic review, announced on 20 June 2023, regarding certain assets and operations and selected investments, including YIT’s ownership stake in Tripla Mall.
YIT Group Communications, tel. +358 44 743 7536, email@example.com
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YIT is the largest Finnish and a significant North European development and construction company. We develop and build sustainable living environments: functional homes, future-proof public and commercial buildings and infrastructure for smooth mobility. We employ around 5,000 professionals in nine countries: Finland, Sweden, Norway, Estonia, Latvia, Lithuania, the Czech Republic, Slovakia and Poland. Our revenue in 2022 was EUR 2.4 billion. YIT Corporation's share is listed on Nasdaq Helsinki. Read more: www.yitgroup.com