Advent International has sold its interest in French construction rental company the Loxam Group for an undisclosed sum to a new holding company, Loxacor. The deal represents the third buyout for Loxam within a decade. The transaction sees the Loxam management team increase its interest in the business to 64%. Three financial investors UI, Credit Agricole’s private equity arm; Alpha Investments and a new investor, HarbourVest Partners, will hold the remaining equity.
Advent bought its stake in the company in 1999 with Alpha Investments and UI. Each acquired approximately 21% of the company. The original value of the deal was undisclosed.
Loxam was acquired for the first time in 1994 by a group of investors led by the UI Group, with the participation of Loxam management and employees of the company. The group has grown to operate 265 branches across France, the UK, Germany, Spain and Belgium and employs 2,060 staff. Sales of €360m are expected for 2003.
Natexis Banques Populaires and Société Générale provided Loxacor with the debt finance for the transaction.