3i, Pragma Capital Strike €60M Loxam Deal

Investors 3i and Pragma Capital have teamed to take a minority stake in Loxam Holdings, a European equipment rental company. The €60 million deal will provide the private investors a minority stake in Loxam, which has annual revenue of about €700 million, according to a statement issued by the companies. Other specifics of the deal were not publicized. 3i’s Denis Ribon worked on the deal for the private equity firm.

PRESS RELEASE:

01 July 2011
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 of 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.”