08.01.2008

Haulotte exits French rental market

The Haulotte Group has sold its rental businesses in France, Lev and Royan Levage to Loxam.

The two companies have a fleet of around 2,000 units which operate from 25 locations it contributed around €30 million in revenues to the group in 2007.

Alexandre Saubot, Haulotte’s chief operating officer, said: “This handover will have a positive impact on the Haulotte Group 2008 accounts and will strengthen its financial and human capacity to develop its business in and outside Western Europe. The emerging markets will fuel Haulotte Group’s profitable growth over the next few years.”

Gérard Déprez, chairman of Loxam said: “LEV is recognised as a leader in lifting
equipment rental and will contribute to the development of Loxam’s lifting equipment division.”

Vertikal Comment

Saubot has always said that Haulotte will only enter or remain in the rental business for strategic purposes. The justification to remain in the French market was hard to see, the company may well have also come under pressure from Loxam to exit?

There is no indication that any sales agreement is tied in with this deal, however it is hard to imagine that this subject was not discussed. Most companies in the same situation would have tried hard to have secured an annual purchase agreement as part of the transaction.

Haulotte may well look now to invest the proceeds from this sale to promote access rental in emerging markets, either through financial support or by entering key markets itself.

Questions will inevitably be asked about the future of UK platforms, its UK rental operation. Loxam has recently employed Steve Shaughnessy to head up its UK business. Many observers saw the move as a step down from his role at A-Plant, unless Loxam had major plans for its UK business which include further acquisitions?