Loxam, France-Based Rental Giant, Makes Preliminary Cash Offer for Lavendon
Loxam, Europe’s largest equipment rental company, has made a preliminary cash offer to acquire Lavendon Group Plc. one of the U.K.’s leading equipment rental company. The acquisition would dramatically strengthen Loxam’s position in the U.K., Europe and the Middle East. However, Lavendon, which less than a week ago turned down an acquisition offer from TVH Group, a Belgium-based manufacturer, rebuffed Loxam’s offer, possibly setting the stage for a bidding war for Lavendon.
Loxam asked Lavendon’s shareholders not to act on TVH’s offer, stating that it was in talks with Lavendon’s management. Loxam, which hasn’t revealed the size of its preliminary cash offer, also said it has not made a definitive bid and might not necessarily do so. TVH offered about $435 million to acquire Lavendon, which has operations in the U.K., Germany, Belgium, France, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. Already one of the world’s largest rental companies, acquiring Lavendon would significantly boost Loxam’s position in those countries.
According to International Rental News, Loxam posted rental volume of €838 million in 2015. Lavendon, which reported rental volume of €328 million in 2015, also posted revenue and profit upticks in the nine months of 2016, with a particularly strong performance in the Middle East. Lavendon said earlier this month that its full-year performance would be ahead of expectations.
Lavendon also asked its shareholders not to act on Loxam’s offer.
Loxam, meanwhile, has also begun negotiations to acquire Spanish rental company Hune, the country’s second largest rental company, with annual revenues of about €70 million. Hune has 35 branches in Spain, so combined with the 11 branches Loxam already has there, Loxam would become a major power in the Iberian peninsula. Hune also has rental businesses in Portugal and France, and joint ventures in Saudi Arabia and Colombia.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.