Loxam annouces the acquisition of A Geradora Aluguel De Máquinas and continues its development in Brazil

 

Degraus Andaimes, Máquinas E Equipamentos Para Construção Civil S.A. (“Loxam Degraus”), a subsidiary of the Loxam Group (“Loxam”), announces that it has entered into an agreement to acquire  A Geradora Aluguel De Máquinas S.A. (“A Geradora”) from its current shareholders.

 

Established in 1989, A Geradora is a national leader in the temporary power generation rental market in Brazil. The company operates a fleet of premium equipment focusing on back-up and off-grid power solutions. Through its extended network of 15 branches, A Geradora benefits from a competitive geographical footprint and has a diversified customer portfolio covering a broad range of segments and industries. The company employs approximately 650 people and is headquartered in Salvador de Bahia.

 

Together with the acquisition of Motormac Rental completed earlier this year, this operation further reinforces Loxam Degraus’ position on the Brazilian equipment rental market, and brings combined pro-forma 2022 revenues in Brazil to BRL 450m (approximately EUR 85m). The consolidated network will count 42 branches all over the country, providing Loxam with a nationwide reach and enhancing the proximity with customers.

 

The completion of the transaction, which is subject to the satisfaction of certain conditions, is expected to take place in the coming weeks.

 

Mr. Enilson Moreira De Lima, CEO of A Geradora, who will continue to assume the management of the company during the interim period, stated: “We have dedicated more than the last three decades to building a success story. A Geradora is a market leader in the segments where it operates, and a company respected by its stakeholders, whose values are ethics, respect and responsibility in all its relationships. When we decided to hand over the control to another group, one of the major concerns was our legacy, and to maintain respectful relationship with our employees and our commitment to our customers, suppliers and the society. We feel very confident that we made the right choice. Loxam, thanks to its history, is aligned with our goals and therefore, it will be a great opportunity to, not only maintain what we have built, but also to continue writing this success story.”

Gérard Déprez, President of Loxam, stated: “I am very pleased to welcome A Geradora and its skilled and experienced team into the Loxam group. The Company’s branch network, rental fleet, customer portfolio and expertise in power generation are very complementary to Loxam Degraus’ current generalist activity, and this transaction creates a true nationwide player. The expertise and strong reputation of A Geradora will allow us to set new goals to achieve together. Only a few weeks after the completion of Motormac Rental’s acquisition, this second transaction demonstrates Loxam’s commitment to the development of its Brazilian operations.”

 

The shareholders of A Geradora have been advised by IGC  (financial advisor) and Cescon Barrieu (legal advisor). Caravel Corporate Finance and Demarest provided respectively financial and legal advisor to Loxam, and KPMG acted as financial and tax due diligence advisor.

 

INVESTOR CONTACTS

LOXAM Patrick Bourmaud / Emmanuel Leblanc +33 (0)158 440 400 investor@loxam.com

FTI Consulting Cosme Julien-Madoni / Emily Oliver  +33 (0)147 036 819 loxam@fticonsulting.com