Private equity firms 3i Group plc and Pragma Capital announced this week they have invested a combined €60 million (about U.S. $86 million) in French equipment rental giant Loxam in return for a minority ownership of Europe’s largest rental company.
Loxam, founded in France in 1967, is Europe’s largest rental company with about €700 million in revenues in 2010, and has 541 international branches. The capital investment will help Loxam’s balance sheet and further its growth strategy, which includes increasing Loxam’s profile and presence across Europe, ensure the liquidity of Loxam’s employee shareholder plan, and strengthen the equity of the company to facilitate acquisitions.
“We are delighted to welcome 3i and Pragma Capital into our group of shareholders,” said Gérard Déprez, Loxam CEO. “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, partner in 3i France, said 3i was impressed with Loxam’s resilience during the economic crisis as well as its strong potential for continued growth in Europe. “3i has extensive experience in this sector, particularly through our previous investment in HSS in the U.K.,” said Ribon. “This is the fifth investment (three minority and two minority transactions) by 3i’s French team in the past 15 months.”
3i has invested in the rental industry and related companies in the past, including Deutz AG’s power systems unit; Alimek Hek, a manufacturer of hoists, lifts and mast-climbing equipment; and U.K.-based rental chain HSS Hire.
