The private equity fund CataCap, together with pension fund Danica and French Access Capital Partners, has acquired and merged two of Denmark’s leading equipment rental companies, GSV Materieludlejning and Pitzner Materiel.
Together the companies form a “one-stop shop” and account for nearly one-fifth of the DKK 3 billion (€402 million) rental market for construction equipment in Denmark.
CataCap will become the majority shareholder in the combined company, which continues under the name GSV Materieludlejning. GSV senior management will step in as co-owners. The acquisition and merger is the fourth investment in under two years for the private equity fund
”We’ve had our eyes set on the very fragmented equipment rental market in Denmark for a long time,” said CataCap partner Vilhelm Hahn-Petersen.
“While GSV has delivered strong topline growth and earnings through a sharp focus on customers and products, Pitzner has optimized earnings by implementing one of the industry’s most advanced fleet management systems during the same period,” he added.
“Merging the two companies is therefore a dream scenario and we look forward to developing the new GSV together with management and employees.”
Pitzner said the new company would have a market share of 18%, taking it above the 11% currently held by French company Loxam.
The new GSV, which rents out machines and equipment to construction companies, the public sector, industrial and civil engineering customers, has approximately 250 employees and a national network of depots.
The company will have the market’s widest product portfolio, covering lifts, platforms, scaffolding, pavilions and modules as well as heavy equipment, used in construction and civil engineering projects.
“I look forward to being able to offer our customers a better and wider range of products and an even higher level of service,” said GSV’s chief executive officer Dan Protin, who will become CEO and co-owner of the new company.
Morten Pitzner, the former chairman of Pitzner Materiel, also views the merger as the right move.
”Pitzner and GSV complement each other in many ways. As such, the merger creates a series of unique opportunities for both customers and employees. I look forward to following this development.”