Arri Surprisingly Sells its Global Rental Business
Arri, which was sold to German entrepreneur Thomas Riedel in April, announced today that it has agreed to sell its global rental business operations in Europe, the United Kingdom, and North America.
In a statement, Arri says that it intends to sell its rental operations to H2 Equity Partners, a leading Western European investment firm founded in 1991. H2 Equity Partners says it focuses on “mid-sized companies in the UK and Ireland with significant growth or improvement potential,” and it has over £500 million of committed funding at this time.
The company says a “key rationale” for selling Arri Rental is a “structural conflict of interest between Arri’s manufacturing business and its own rental business: as a manufacturer of camera and lighting technology, Arri supplies customers and partners worldwide, some of whom compete with its rental activities.”
Arri has been renting out cameras since 1955, per Arri’s 100th anniversary website from 2017. So this is a huge change for the company. Arri characterizes the move as helping it to “sharpen its focus” and focus more on developing and commercializing its camera, lighting, and software products.
“This transaction is a milestone in Arri strategic transformation and future positioning,” said Thomas Riedel, owner of Arri as well as founder and owner of Riedel Communications and the Riedel Group. “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.”
Arri believes that separating its business areas will “create clearer market goals going forward.”
Although Arri is selling its primary rental operations in Europe, the UK, and North America, it is worth noting that Illumination Dynamics is not part of this transaction and will remain an Arri-owned company. Further, Arri says that it will continue to work very closely with the rental operations it is selling.
“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,” says Dana Harrison, a key cog in the existing Arri Rental business in the United Kingdom.
“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. With H2 Equity Partners as our partners, we are exceptionally well placed to invest, expand into new markets and deepen the relationships that define us. We are also pleased to continue working closely with Arri as our technology partner,” Harrison continues.
“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,” adds Patrick Kalverboer, Managing Partner of H2 Equity Partners.
Arri and H2 Equity Partners have opted not to disclose the financial terms of the agreement, which is currently undergoing standard closing procedures.
Image creditsArri
