HLDI and HLD Europe has entered exclusive negotiations with investment companies PAI Partners and Sagard to acquire a majority stake in Kiloutou, one of Europe’s leading equipment leasing companies designed for industry and construction.
The completion of the transaction is subject to the consultation of the Works Council and the approval of the competition authorities.
Founded by Franky Mulliez in 1980, number 2 in the rental market for equipment for industry and construction in France, the 4th largest European rental company, Kiloutou offers its customers the widest range of equipment on the market. With an expected turnover of more than 600 million euros for 2017 and a workforce of 4,300 people in Europe, Kiloutou now has a network of around 500 branches in Europe (France, Poland, Spain, Italy and Germany). The Kiloutou group targets a very diversified clientele of professionals: national accounts, construction companies, craftsmen, communities and administrations, industries, services and SMEs.
With the support of its new shareholder, Kiloutou will be able to accelerate its development in Europe and strengthen its leading position on the French market thanks to its management team, which has acquired in the last 10 years a real expertise in external growth.
The significant reinvestment of Franky Mulliez and the team at Kiloutou (1,400 employee shareholders) led by Xavier du Boÿs and Olivier Colleau alongside HLDI and HLD Europe shows their deep conviction in the development prospects of Kiloutou.
Xavier du Boÿs, President of Kiloutou:
“I am delighted to be able to start a new stage in the development of this wonderful company with our new shareholders, with whom we share the same values. Together, we aim to build a broad European equipment rental platform, focused on our mission: to simplify the lives of all our customers wherever they are. For this, we will continue to expand our service offering and improve the customer experience, particularly through our digital investments. We will succeed in this project by remaining faithful to our commitment to sustainable development, and keeping at the heart of our concerns the quality of the men and women of Kiloutou, who are the key to its success. “
Jean-Bernard Lafonta, Partner and Co-Founder of HLD:
“The specificity of HLD, which accompanies successful companies without time constraints, has been very important in the choice of the new shareholder of Kiloutou: it allows us to realize the European ambition while overcoming the economic cycles. We are delighted to be associated with the Kiloutou growth project, whose corporate culture is so special, based on a passion for the customer, a taste for performance and trust in people, reinforced by the impressive dynamism of the company. teams, echo our values. With the entrepreneurial spirit that drives HLD, we are confident that we can help the Kiloutou teams to become the European leader in the sector. “
Antoine Ernoult-Dairaine, Partner at Sagard:
“Shareholders of Kiloutou since 2005, we are very proud to have accompanied for more than 12 years the different stages of growth of the group Kiloutou, in France and then in Europe, as majority and then minority shareholder. These successes are to the credit of team members, these women and men who animate the group on a daily basis with a dynamism and an unparalleled state of mind. Our thanks also go to Franky Mulliez, the group management team and PAI for their trust. “
Nicolas Holzman, Partner at PAI Partners:
“Over the last 6 years, Kiloutou has doubled in size, continuing to gain market share, diversifying its product lines and becoming a formidable acquisition platform. Kiloutou is today a European leader present in 5 countries. PAI warmly thanks the teams of Kiloutou, its leaders and our partners Franky Mulliez and Sagard for this great adventure of transformation “
The fourth-largest European rental company and a major player in equipment rental in France, the Kiloutou Group delivers product and service solutions to an extremely diverse clientele: major national companies, construction firms, craftsmen, local authorities and administrations, industries, services, SMEs. The Kiloutou group offers the widest range on the market with some 1,000 products and over 250,000 items of equipment in a variety of fields: aerial work platforms, earthmoving and construction equipment, first fix and second fix equipment, commercial vehicles and event-based equipment. With a turnover of 532 million euros in 2016 and a workforce of 4,500 in Europe, Kiloutou is continuing its expansion and now represents a network of 430 agencies in France, some 50 of which are with specialist building retailers, while around 30 are local stores established in city centres. The network also counts 30 agencies in Poland, 14 in Spain and 3 in Germany and 10 in Italy.
Created in 2016, HLDI is a holding company with industrial interests controlled by Dentressangle Initiatives, investment holding company of the Dentressangle family, and supported by HLD teams. HLDI aims to invest in control with HLD Europe. HLDI today holds Tessi with HLD Europe. Upon completion of the transaction, HLDI will become the largest shareholder of Kiloutou.
About HLD Europe
Kiloutou is the 4th acquisition of the year after Tessi realized with HLDI, Convent of the Minimes and M-Cube, first acquisition of the holding company in Italy.
HLD Europe is an entrepreneurial holding company. Its founders are Jean-Philippe Hecketsweiler, Jean-Bernard Lafonta and Philippe Donnet. HLD Europe also has shareholders in the forefront, including Claude Bébéar (founder of the AXA insurance company), Norbert Dentressangle (founder of the eponymous transport and logistics group) and Jean-Charles Decaux (Co-Chief Executive Officer and representative of the founding family of street furniture group JC Decaux) or Christian Gueugnier and Didier Le Menestrel (founders of Financière de l’Echiquier). Today, HLD Europe owns Tessi, Filorga, Sarenza, Coyote, Elivie, Couvent des Minimes and M-Cube, as well as interests in SVR, Tranoï, Funbridge, Alchimie and Gekko (a company currently being sold to AccorHotels).
The vocation of HLD Europe is to invest for the long term in European companies in order to support them in their international development and reinforce their leadership. HLD Europe is interested in companies that are part of an entrepreneurial approach with potential for organic or external growth, improving operational performance and international development.
For more information on HLD Europe: www.groupehld.com
About PAI Partners
PAI is one of Europe’s leading private equity players with offices in Paris, London, Madrid, Milan, Munich, Luxembourg and Stockholm. PAI manages and advises funds dedicated to LBO operations for a total capital amount of 8.8 billion euros. Since 1994, PAI has carried out 63 LBO transactions in 11 countries, amounting to approximately € 43 billion. PAI is distinguished by its industrial approach and the sectoral expertise of its teams. PAI provides acquired companies with the financial means and strategic support necessary to continue their development and increase their strategic value.
For more information on PAI: www.paipartners.com
Sagard is a French investment fund that provides capital support for the development of mid-sized companies led by ambitious management teams. Sagard, created in 2003 on the initiative of the Desmarais family (Power Corporation of Canada), brings together a tour de table of large industrial families and manages funds totaling 2.5 billion euros. Since 2004, Sagard and its team of 10 professionals based in Paris have made 30 investments in industry and services in France, Belgium and Switzerland.
For more information on Sagard: www.sagard.com