LOXAM takes majority stake in MOTORMAC RENTAL

Loxam announced on 17 May 2023 an agreement to acquire control of Motormac Rental, the equipment rental company based in Porto Alegre, from the Velloso and Solheid families. The purchase was made by Degraus Andaimes Máquinas e Equipamentos para Construção Civil, the group’s Brazilian subsidiary known as Loxam Degraus, through the acquisition of the holding companies Vellopar Participações, SPP Participações and TPA Participações. Completion was expected within weeks, subject to conditions, and Loxam financed the deal from its own resources. At the time, Motormac Rental ran nine branches across the states of Rio Grande do Sul, Paraná, Santa Catarina and São Paulo, and employed around 170 people. The acquisition took Loxam into the southern Brazilian market and doubled its revenue in the country, giving it a combined network of 27 branches. Guilherme Boog, chief executive of Loxam Degraus, was to lead the combined operations after a transition period, and said the geographic fit and the skills of the teams strengthened the group’s existing activities. The selling families were to concentrate their resources on their historical equipment distribution business and on developing new activities, including renewable energy. Planimec advised the Velloso and Solheid families on legal matters, while Loxam worked with Caravel Corporate Finance as financial adviser, DDSA as legal counsel and Mazars on financial and tax due diligence.

The acquisition of Motormac Rental is part of the growth strategy of Loxam, which already has several external growth operations under its belt, notably Jiab Hyrcenter in 2023.