Loxam predicts significant growth in Brazil

Loxam in Brazil has 42 subsidiaries located in 16 states. (Photo: Loxam)

Loxam, one of the main players in the rental sector worldwide, is betting big on Brazil.

The European group, which entered the country in 2015 by acquiring 25% of Degraus Andaimes’ shares (of which it has been the controlling entity since 2018), concluded two more significant acquisitions last year: Motormac Rental and A Geradora, expanding its geographic coverage to the south and northeast of Brazil.

The geographical complementarity of businesses is particularly important for Guilherme Boog, CEO of Loxam in Brazil, who comments that “success in the Rental business is highly dependent on the logistical setup of the company, as transportation costs for equipment often constitute a significant portion of the final rental cost for the customer.”

Guilherme Boog, CEO of Loxam in Brazil. (Photo: Loxam)

The expectations are very positive. With 42 branches located in 16 states, over 1,100 employees, and 15,000 machines available for rental, the group is currently among the three largest rental companies in Brazil.

In fact, according to Boog, the combined operations of the three companies resulted in a net revenue equivalent to R$450 million (around US$92 million) in 2022, a figure that could reach R$500 million (approximately US$102 million) in 2023 and increase by another 15% in the current year.

“Loxam seeks leadership in all the locations where it operates, being number 1 or 2 in virtually every European country where it has a presence. In Brazil, it wouldn’t be any different,” Boog says.

“The recent acquisitions demonstrate not only confidence in our country and our employees but also an appetite for leadership in a growing market full of opportunities.”