04.09.2013

Loxam to consolidate in France

French international rental group Loxam has announced that it will consolidate all of its French general equipment businesses - Loxam, Laho Equipement, Loueurs de France BTP and Locarest into a single entity - Loxam Rental.
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The ultimate aim is to gain efficiencies from becoming a single network and by operating under single brand.

The group which is privately held, had revenues of €828 million in 2012 and operates from 598 locations with over 4,330 employees in in 11 countries, making it Europe’s largest rental business.

A statement from the company said: "The pooling of resources will provide the Group with an opportunity to strengthen its sales team, relaunch the network and further expand the range of equipment on offer with a view
to catering to both professional and individual needs."

Vertikal Comment

This move makes complete sense, and the only thing to say is why Loxam did not do this many years ago. Although to be fair, the businesses it acquired that remained as separate entities all had strong brands, reputations and management teams.

However the potential efficiency gains are substantial, the challenge now will as always be managing the change from a people point of view and keeping them all positive and motivated while some will inevitably have to go or move to less elevated positions. With the French market in the doldrums, it makes sense from several aspects to get on with it now.