Loxam has begun exclusive negotiations with shareholders of Spanish rental company Hune to acquire the business. Hune is Spain’s second largest rental company, with annual revenues of €67 million and 43 branches, of which 35 are in Spain.
The potential deal, announced by Loxam on 17 November, would considerably boost Loxam’s business in Spain, where it already has 11 locations, but also add Hune’s rental businesses in Portugal and France, as well as its joint ventures in Saudi Arabia and Colombia.
Loxam said the deal was subject to the signing of a share purchase agreement and the satisfaction of certain conditions, which are expected to conclude before the end of the year.
“The potential integration of Hune within Loxam will help Hune to continue its development and give it the benefit of the support of a solid industrial shareholder, solely dedicated to the equipment rental business”, said Loxam.
The Spanish rental market has been languishing since the financial crisis, but in the last 18 months had finally showed some signs of growth. Loxam’s pursuit of the Spanish renter highlights that Spain is becoming a more attractive rental market.
Hune and its shareholders are being advised by Société Générale and Santander, while Loxam is advised by Rothschild.