IK exits Laho by secondary route

Industri Kapital recuperated about two-times its original investment with the sale of Laho Equipement in a secondary buyout to Barclays Private Equity for €110m. The Industri Kapital 2000 fund acquired the construction equipment rental business from a consortium of investors led by Bridgepoint Capital in 2000. During the period of IK’s ownership, Ebitda doubled at the company as non-core distribution assets were divested.

Under IK’s ownership, Laho – the third largest company of its kind in France – increased its national network of outlets to 110 from 72. This was achieved through organic growth and add-on acquisitions. Revenues at the company are €115m.

The exit of Laho is IK’s third French realisation and follows the exits of Fives-Lille and Labeyrie. In December 2004, IK acquired Idex, France’s largest independent energy and environmental services company.

Christopher Masek, a partner at Industri Kapital, said that Laho had developed into a pure-play rental group with an extensive national network. Serge Ansaldo, chief executive of Laho, said the company was well positioned to play an instrumental role in consolidating the French equipment rental market.

“Barclays Private Equity France and the management team of Laho . . . share the same objective of accelerating the development of the group in its core business of rental, both through internal and external growth,” said Guillaume Jacqueau, managing director of Barclays Private Equity France.