07.07.2011

Private Equity firms buy into Loxam

Private Equity firms 3i and Pragma Capital have acquired a minority stake in Loxam Holding, the French based international rental company.

Loxam, established in 1967 had revenues in 2010 of just over €700million and employs nearly 4,000 people working at 541 locations across 11 countries.
3i says that the new investment is intended to ensure the liquidity of Loxam’s employee shareholder scheme and boost the company’s equity in order to facilitate significant acquisitions

Loxam chief executive Gérard Déprez said: “We are delighted to welcome 3i and Pragma Capital into our group of shareholders. They have a proven track record working in partnership with entrepreneurs and management and will provide a powerful international network in Europe and worldwide. These strengths will enable us to continue our ambitious growth strategy”.

Denis Ribon, a partner with 3i France, added: “We have been in contact with Loxam for many years. We were attracted by the company’s resilience during the economic crisis and its strong potential for European growth. 3i has extensive experience in this sector, particularly through our previous investment in HSS in the UK. In addition, our international network overlaps with Loxam’s geographic footprint. This is the fifth investment by 3i’s French team in the past 15 months.”

Jean-Pierre Créange chief executive of Pragma Capital said: “We have been the first private equity firm to partner with Loxam to support the company through its outstanding development. We are pleased to enter this new phase of growth.”

Vertikal Comment

Loxam is a powerhouse in France and without question Europe’s largest general equipment rental company. It has though struggled to replicate its success outside of France, tending to make acquisitions and then do little to develop them, tending to leave them much as they found them rather than replicate its domestic operations. The UK is a classic example of this.

There have been signs recently of a change to this apparent strategy with the Loxam's Dutch business - also based on a large access related acquisition -growing in size while expanding its product range as it develops its access business along with building up a general rental operation.