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, the Dow Jones Newswires have reported.

Loxam, founded in 1967, is Europe’s largest rental company with about €700 million in revenues in 2010. The capital investment will help Loxam’s balance sheet and further its acquisition efforts.

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 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.