Hertz Global Holdings has completed the sale of the France and Spain businesses of Hertz Equipment Rental Corp. to the Loxam Group through the transfer of the entire share capital of Hertz Equipement France and Hertz Alquiler de Maquinaria. The transaction includes 60 locations in France and two in Spain.
HERC is one the largest equipment rental companies in North America and has operation in the Middle East and China and has a presence in eight other countries through franchise partnerships. The business is on course to separate from Hertz Global Holdings and become an independent company by mid-2016.
Loxam is the largest equipment rental company in Europe with 623 locations in 14 countries. The transaction increases its market share in the Paris area, and the north and west of France, and reinforces its Spanish network.
“The transaction will enable HERC to focus on core and specialty market expansion and investments that support our growth strategy, both in the short term and for our future as a standalone company,” said Larry Silber, president and CEO of HERC. “We will continue to evaluate opportunities to increase our global footprint in emerging and growth markets, with an emphasis on franchises and joint ventures, as well as selective development of company-owned branches.”
“This transaction allows Loxam to strengthen its nationwide leadership in France, where HERC is one of the leaders in construction equipment rental, and to reinforce its specialty activities,” said Gerard Deprez, chairman of Loxam. “HERC Spain will bolster Loxam’s current presence and allow Loxam to grow in power equipment rental. I am also glad to welcome HERC’s France and Spain experienced teams into the Loxam Group. Together we will join forces to provide our customers with the best possible service.”
Sycomore Corporate Finance and Linklaters acted as exclusive financial and legal advisors to Hertz, while Loxam was advised by Cleary Gottlieb Steen & Hamilton.