Kiloutou´s new private equity owner plans expansion

By Murray Pollok05 April 2011

French rental company Kiloutou has been sold by its private equity owner Sagard Private Equity to another private equity company, PAI Partners, for €535 million (enterprise value). The deal is subject to approval by competition authorities.

The new majority owners said Kiloutou would now embark on a further growth phase, making acquisitions, extending its depot network and establishing start up rental operations in countries outside of France.

Previous owners Sagard, Kiloutou´s founder Franky Mulliez and Kiloutou managers are investing alongside PAI and will remain as shareholders, although PAI becomes the majority owner.

Nicolas Holzman, a partner at PAI, said: "With the management and all shareholders, we aim to start a new phase of Kiloutou´s development, including an acceleration of acquisitions and start-up businesses internationally. PAI is pleased to support this new development."

Xavier du Boÿs, chief executive officer of Kiloutou, who remains in that position, said: "I am happy to continue the development of this great company as part of a very positive LBO (leveraged buy-out), which has demonstrated that high value creation can go hand in hand with development and partnership. Nearly 450 employees have participated in the [buy out].

"I am pleased to begin a new stage in our development with our new majority shareholder PAI, while continuing our history with our current shareholders."

Since 2005, Kiloutou has increased its depot network from 157 to 283 and increased revenues from €188 million to €292 million. EBITDA has risen from €43 million to €76 million.

Kiloutou is number two to Loxam in the French rental market, but is the largest in the small equipment sector.

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