09.07.2007

Loxam buys in Denmark

Loxam has moved into the Scandinavian market with the purchase of DNE-JJ the business formed from the merger of DNE Materieludlejning and JJ Maskinudlejning. See Denmarks Largest rental company?

The acquisition effectively makes Loxam one of the largest rental companies in Denmark with revenues of €58 million from 17 locations and a rental park of 15,000 items. The company has 200 employees and a fleet of 650 aerial lifts plus a good number of telehandlers.

The acquisition will not change the planned management structure for the merged business with Jens Johansen (owner of JJ) becoming CEO/adm director, Ole Staxen owner of DNE taking the title of sales director, while Lars Kruse Ravnsbeck becomes a general director and Hanne Baunsgaard finance director.

Ole Staxen said the takeover would be advantageous to the company’s customers and employees; “The synergies between DNE/JJ and Loxam will strengthen our competitive edge and our ability to develop our national as well as future international platform. By choosing Loxam as our parent company, we have become part of the largest equipment rental company in Europe”.


Vertikal Comment

Loxam has picked up this business just as the merger of the two was completing. One wonders if this was the plan all along? It certainly gives the French company a strong foothold in Scandinavia.

Its challenge will be competing against Cramo and Ramirent, both of which consider this to be their home market and both of which have a much stronger track record than Loxam for growing the businesses that they acquire.

In acquiring the business at the point of it being created by the earlier merger and with a strong management team in place Loxam could do well, giving them a good base to exapnd into Sweden and Norway.

The success will depend on the two previous owners attitude now that they have a significant sum of money in the bank and how much lattitude they are given by Loxam to invest in organic growth as well as Loxams penchant for growth by acquisition.

Watch this space.



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