3i, an international investor focused on private equity, infrastructure and debt management, and Pragma Capital, today announce they have taken a minority stake in Loxam Holding, the French and European leader in the equipment rental industry. 3i and Pragma Capital have invested approximately €60 million.
Established in 1967, Loxam is a pioneer in rental equipment for the construction and civil engineering industries. The company currently has a turnover of more than €700million and employs nearly 4,000 people across 11 countries. By focussing its development on organic growth and strategic acquisitions in France and abroad, Loxam now has a total of 541 branches worldwide. Having grown steadily over the years, the company now as fleet of equipment totalling 200,000 items across 1,000 product types.
The investment by 3i and Pragma Capital will accelerate the company's growth strategy which includes:
- Further increasing Loxam's profile and presence across Europe thanks to the international network of its shareholders
- Ensuring the liquidity of Loxam's employee shareholder scheme
- Strengthening the equity to the company to facilitate potentially significant acquisitions
Gérard Déprez, CEO of Loxam, commented: «We are delighted to welcome 3i and Pragma Capital into our group of shareholders. 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, 3i France, adds: «We have been in contact with Loxam for many years. We were attracted by the company's resilience during the economic crisis and its strong potential for European growth. 3i has extensive experience in this sector, particularly through our previous investment in HSS in the UK. In addition, our international network overlaps with Loxam's geographic footprint. This is the fifth investment (3 minority and 2 majority transactions) by 3i's French team in the past 15 months.»
Jean-Pierre Créange, CEO of Pragma Capital, commented: «We have been the first private equity firm to partner with Loxam to support the company through its outstanding development. We are pleased to enter this new phase of growth.»
Contributors : 3i : Denis Ribon, Mathieu Blanc, Vincent Guillaumot Pragma Capital : Jean-Pierre Créange, Alexis Wibaux Advisers : Financial Due Diligence : PWC (Sidois Didier, Olivier Lorang) Tax Due Diligence : Landwell (Xavier Etienne) Insurance Due Diligence : Cavaro Council (Christian Mergier) Legal Advice : SJ Berwin (Maxence Bloch, William Robert), Weil Gotshal & Manges (Frédéric Cazals, Gautier Elies)
Notes to editors
Formed in 1967, the Loxam Group is one of the pioneers in the rental of equipment for construction and industry professionals. Today, with a turnover of 702.5 million euros, 540 ISO 9001 and ISO 14001 certified branches and nearly 4,000 employees located across 11 countries, the Loxam Group is the number 1 in Europe in the equipment rental market. With a significant stock of more than 200,000 items of equipment, Loxam always knows how to anticipate, support and respond to the growing demand of companies when it comes to outsourcing the purchasing, management and maintenance of their supply of equipment.
About 3i (www.3i.com)
3i is an international investor focused on Private Equity, Infrastructure and Debt Management, investing across Europe, Asia and the Americas. Our competitive advantage comes from our international network and the strength and breadth of our business relationships. These underpin the value that we deliver to our portfolio, shareholders and fund investors.. In France, 3i has recently invested in Labco (European network of medical laboratories), Vedici (network of private clinics), Trescal (measuring instruments) and WFCI (airline services).
About Pragma (www.pragmacapital.fr)
Pragma Capital is the manager of Pragma I and II, two mutual fund totaling 580 million euros. Funds managed by Pragma aim to hold a majority or aim to be a shareholder of quality companies, along with management teams. Pragma is active in the middle market in France. These companies are mainly French companies with high growth potential where the goal is to help managers of development projects. Pragma's investments have weathered the crisis well. The turnover of the seven portfolio companies of Pragma II, grew very significantly between 2008 and 2010, reflecting the talent of the management teams and the correct positioning of businesses financed by Pragma.
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