HERC prepares potential sale to Loxam
By Euan Youdale29 June 2015
Loxam has entered into exclusive negotiations for the potential acquisition of the France and Spain businesses of Hertz Equipment Rental Corporation (HERC).
The deal would see all shares of Hertz Equipement France and Hertz Alquiler de Maquinaria transferred to the European rental giant. The proposed transaction includes 60 locations in France and two in Spain. As part of the process, HERC and Loxam are both consulting with their respective works councils in France.
The potential divestiture of its France and Spain businesses would enable HERC to focus on its core market in North America and specialty markets in the Middle East and China. It also has a presence in seven other countries through franchise partnerships. HERC said the plan is in line with its strategy to maximize profitability and shareholder value as part of its separation from The Hertz Corporation.
For Loxam the acquisition would increase its market share in the Paris, France, area and in the north and west of France, as well as reinforce its Spanish network.
The proposed transaction remains subject to receipt of the requisite works council opinions, the signing of the sale agreements and obtaining required corporate and regulatory approvals. Terms of the potential share purchase have not been disclosed.