Lou-Tec in Canada sold to private equity
14 September 2021
Canadian rental company Lou-Tec said its acquisition by private equity firm Sagard Private Equity Canada would help it achieve its goal of becoming a “major player across the country by 2030”.
Lou-Tec currently operates from 30 locations in the province of Quebec in Canada. Founded in 1979 it employs 400 people and had estimated revenues of €165 million in 2020.
Alongside existing Lou-Tec management and shareholders, Sagard has been joined in the acquisition by Canadian private equity firm Walter Capital Partners, by Investissement Québec – which is owned by the government of Quebec - and BDC Capital, the finance arm of Canadian bank BDC.
No details were given on the price paid or the extent of Sagard’s share ownership in Lou-Tec. Sagard is based in France but established a Canadian arm in January this year. Lou-Tec is its first investment in Canada.
Sagard has extensive experience of equipment rental through its past ownership stake in Kiloutou, one of Europe’s largest rental companies. It sold a proportion of its holding in Kiloutou in 2011 and exited completely in 2017.
Jean-Marc Dallaire, President and CEO of Lou-Tec, said; “Thanks to this new partnership, Groupe Lou-Tec will be able to stay the course on its mission, support our customers with their projects, pursue our digital shift, accelerate our growth and expand into new geographies.”
Marie-Claude Boisvert, Partner and Head of Sagard PE, said; “Our investment in Groupe Lou Tec is a great example of Sagard PE’s strategy of partnering with strong companies and working together with co-investors to accelerate their journey towards market leadership.
“We have been impressed with Lou-Tec’s long track record of growth in a highly dynamic marketplace, and we are proud to partner with CEO Jean-Marc Dallaire and his team for our inaugural investment.
“We are happy to invest in people and in infrastructure to expand the company’s presence in current - and new - geographies and product offerings to bolster Lou-Tec’s leadership in the Canadian equipment rental market.”
This deal is the latest in a series of private equity investments in equipment rental, including Aggreko, Modulaire Group (Algeco) and Adapteo.