ARRI revealed a deal to sell its global rental operations in Europe, the United Kingdom and North America. The business will go to H2 Equity Partners as part of a management buyout.
Why is ARRI selling its rental business?
In a press release, ARRI said the sale is a “planned and significant element of ARRI’s long-term strategic development.” Owner Thomas Riedel added, “It enables us to direct our investments even more specifically toward the further development of our technologies and new growth areas. At the same time, it allows the rental business to continue to develop independently and to unlock additional market potential.”
Who is buying the rental business?
The buyout is led by Dana Harrison, Russell Allen and Tamim Essaji, ARRI Rental’s existing U.K.-based leadership team. ARRI says the deal delivers continuity of leadership, customer relationships and operational expertise. Harrison will become CEO of the new independent global rental business. The team is carrying out the buyout in partnership with investment firm H2 Equity Partners.
Freedom to grow
Harrison said, “For myself and the team, this is far more than a change of ownership; it’s a commitment. We know the business, our customers, and our craft, and through this management buy-out we’re taking ownership of its future. ARRI Rental has built something exceptional over many years, and we’re proud to carry it forward as an independent company. Our customers will see the same teams, the same standards, and the same dedication they have always relied on, but now with the focus and freedom of a business that’s ours to grow.”
Close collaboration with ARRI
Patrick Kalverboer, managing partner of H2 Equity Partners, said, “ARRI Rental has a strong market position, excellent customer relationships and a highly qualified team. The transaction is an excellent fit with our investment strategy. Together with the existing management team, we intend to continue the company’s successful development and unlock additional growth opportunities. At the same time, we look forward to continuing our close collaboration with ARRI as a leading technology partner to the industry.”
What next
ARRI says the new standalone rental group will move to its own brand after a customary transition period. The company hasn’t said when the sale will close. All parties have agreed not to disclose financial details, so we won’t find out how much the buyout cost.
What we think
Last year, we reported that ARRI was considering its future and might be sold. Then, at the end of the year, the company closed two factories in Germany. Finally, in April, Thomas Riedel bought ARRI. Even so, more work remained to secure the ARRI brand for the long term, and selling the rental business is the next step.
There’s a structural logic to it too. As a manufacturer, ARRI sold cameras to rental houses that then had to compete with its own rental arm. Cutting the business loose removes that conflict of interest and lets ARRI focus on developing and manufacturing new products.
