Hertz Global Holdings has announced it has completed the sale of the France and Spain businesses of Hertz Equipment Rental Corporation (HERC) to the LOXAM Group (LOXAM) through the transfer of the entire share capital of Hertz Equipement France SAS and Hertz Alquiler de Maquinaria, SLU. The transaction includes 60 locations in France and two in Spain.
HERC is a leading North American equipment rental company with operations in the Middle East and China along with a presence in eight other countries through franchise partnerships. The business remains on course with plans to separate from Hertz Global Holdings and become an independent company by mid-2016.
LOXAM is the leading equipment rental company in Europe, with over 4,500 employees and 623 locations across fourteen countries. The transaction increases its market share in the Paris area, the North and West of France as well as reinforces its Spanish network, strengthening thereby LOXAM's positioning as a premier player in the European rental industry.
"This 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 H. Silber, president and chief executive officer, 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."
Gerard Deprez, chairman of LOXAM, declared: "I am pleased to announce this acquisition. 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. HERC Spain will bolster LOXAM's current presence and allow LOXAM to grow in power equipment rental. I am also glad to welcome HERC'sFrance 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, respectively, as exclusive financial and legal advisors to Hertz. LOXAM was advised by Cleary Gottlieb Steen & Hamilton.