3i and Pragma invest €60m in Loxam
By Murray Pollok04 July 2011
Private equity firms 3i and Pragma Capital have invested €60 million in Loxam to acquire a minority stake in the French-based rental company.
Loxam said the investment funds would accelerate the growth of the company by facilitating "potential significant acquisitions". It said the funds would also support the company's employee shareholder scheme and the expanded ownership would increase its international profile.
Denis Ribon, a partner at 3i France, said 3i had 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."
Jean-Pierre Créange, CEO of Pragma Capital, commented: "We were 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."
Gérard Déprez, CEO of Loxam, said he was delighted to welcome 3i and Pragma as 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".
Loxam was established in 1967 and now has a turnover of more than €700 million, employing nearly 4000 people at 541 branches in 11 countries.