Advent International bought the machinery Euroloc rental company

Advent International, the international venture capital company, has purchased Euroloc de Maquinaria, S.L., company of rent of machinery for the construction sector, Fides Capital and family owners. Advent has taken by Euroloc, exceeding 80 percent participation, while the senior and Intermediate Capital Group will be divided the remaining capital. The strategy designed to Euroloc focuses on increasing its market share and geographical coverage with the opening of new branches throughout the country and consolidate the machinery rental market through complementary acquisitions.

Louis Camilleri, director of Advent International, Spain, stressed that "in the group we have a wide knowledge of the European market of renting of machinery and we were some time evaluating the opportunities afforded by Spain." We believe that Euroloc is in an excellent position to exploit the potential of the Spanish market, given its sectoral leadership and its national coverage. «The trajectory of the company so far is very positive and we look forward to working together with the experienced management team of the company to increase its value in the long term through the introduction of a strategy of organic growth and through purchases».

Created from the merger of seven regional companies in 2004 and two subsequent acquisitions, Euroloc is the second company of the sector in Spain and one of the companies of rent of machinery in general with a presence throughout the territory. The most important activity of the group is the rent in the short term of small and medium-sized construction companies in housing, infrastructure and public works equipment and machinery. The Park is composed of more than 15,000 units and operates through 28 offices in all the Iberian Peninsula, the Balearic Islands and Canary Islands. The company virtually doubles in size the third operator of the market, giving it a significant competitive advantage when it comes to signing contracts with construction companies throughout the country.

With an annual turnover exceeding € 2.2 billion, Spanish machinery rental market has grown at a rate of 15% each year during the last four. Spurred by this growth, Euroloc sales have experienced a 19% annual growth during this period to 58 million euros in 2005, while the gross operating profit increased 20% per year. It is expected that the sector in the medium term will continue to grow above the average due to the increased penetration in the Spanish sector of the construction machinery rental. The market is very fragmented and only two companies - GAM and Euroloc - have a considerable size to more than 1,500 small competitors, which creates a breeding ground for the consolidation.