Advent builds on Spanish boom

Advent International has bought Euroloc, an equipment company serving the Spanish construction sector, from Fides Capital and family shareholders. Advent owns 80% of Euroloc, with management and Intermediate Capital Group, a mezzanine fund, holding the remaining interest. The value of the transaction has not been disclosed.

Euroloc is one of only two general equipment companies with a national presence in Spain. With over €2.2bn in annual turnover, the Spanish equipment rental market has grown at compound annual rate of 15% over the past four years. Buoyed by this growth, Euroloc’s sales have increased 19% a year during the same period, to €58m in 2005, while EBITDA has risen 20% annually.

In tandem with Advent’s investment, Emilio Cebamanos, ex-CEO of one of Spain’s leading construction companies, will assume the role of non-executive chairman, and Miguel del Campo, the former CEO of Lafarge in Spain, will join the Euroloc board as non-executive director.

Advent has previous experience investing in the equipment rental sector, having co-led the buyout of Loxam Group, the French short-term equipment rental company, in 1999. Post-investment, Loxam acquired three businesses in Europe and, by the time of Advent’s exit in 2003, had established itself as a leading European player, with €360m in sales and 265 branches across France, the UK, Germany, Spain and Belgium.