29.03.2005

Industri Kapital exits Laho Equipement

Industri Kapital has sold French rental company, Laho Equipement to Barclays Private Equity for €110 million. roughly the amount that it originally paid for it.

Laho is the third largest construction equipment rental company in France with 700 employees and revenues of €115 million. Its product range includes all forms of access equipment from all types of scaffold to suspended platforms to self propelled aerial lifts ad well as telescopic handlers.

Industrie Kapital, a Swedish based venture capital company acquired Laho in June 2000 from Pinault, since then Laho has increased its network of outlets in France from 72 to 110 both through organic growth and by acquisition. As part of a strategy to focus on rental, Laho’s sales and distribution business was divested between 2002 and 2004 resulting in a doubling of its EBITA margin over the period.

Christopher Masek, Partner of Industri Kapital, commented:
“We are very pleased with the strategic development that Laho has made under our ownership. Laho is now a pure-play rental group with an extensive national network. Serge Ansaldo and his team have done an excellent job in securing Laho’s continued competitiveness and success during a time of challenging market conditions”.

Serge Ansaldo, Chief Executive of Laho, said:
“IK has been a very good partner for us over the last few years as the company has implemented a clear, focussed strategic plan. Their support and experience from the previous investments in the construction equipment sector allowed us to better identify potential and unlock profit. Laho is now well positioned to play an instrumental role in consolidating the French equipment rental market. Our new partners, BPE, will actively support us in implementing this strategy”.

Guillaume Jacqueau, Managing Director of Barclays Private Equity France, added:
“Laho is a strong player with a solid positioning on a consolidating market. Barclays Private Equity France and the management team of Laho, strongly committed in the transaction, share the same objective of accelerating the development of the group in its core business of rental, both through internal and external growth.”

The transaction is subject to approvals from competition authorities.

Vertikal Comment

These are interesting times for the French rental industry, Last year manufacturer Haulotte took over LEV, a leading aerial lift rental company. This year market leader Loxam has been on the acquisition trail snapping up large competitors and now Laho has changed hands.

While none of these moves has made a significant impact on the general rental market they have had a major underlying effect on the aerial lift rental business. The Loxam and Haulotte acquisitions placed a significant portion of the French aerial lift rental market into publicly quoted hands and perhaps more importantly into the hands of large formally managed businesses, all of which should bode well for the smaller companies in this market, which includes of course the UK based Lavendon group.