For over 40 years, Quebecois companies and individuals have trusted Groupe LOU-TEC for their heavy machinery, tools, and specialized equipment needs. Thanks to a new partnership and strategic growth plan, the clientele-base is about to broaden.
Founded in 1979, Groupe LOU-TEC is one of the leading equipment rental companies in Quebec, operating with more than 400 employees throughout 30 locations across the province. Groupe LOU-TEC commitment to high-quality service, has distinguished the company from its competition. Lou-Tec offers a large, diversified and well-maintained fleet of equipment such as heavy machinery, tools and specialized equipment from a range of more than 1000 categories of quality equipment.
Due to strong growth and being at the forefront of trends in the industry, Groupe LOU-TEC continuously invests in new equipment and new technologies to offer its customers reliable, safe and efficient equipment.
Over the past five years, LOU-TEC has grown exponentially thanks to a strategic shift away from a franchisee model towards a corporate model, according to Jean-Marc-Dallaire, President & CEO of Groupe LOU-TEC.
“Our mission and passion is to contribute to our clients’ success,” says Dallaire. “We aim to be a trusted partner to our clients in their projects wherever they are. If they’re doing a job in Quebec, Montreal or Gatineau, we’re one large network and we’re there to support with top advices, and with best-in-class tools and equipment. With a current $200-million inventory, LOU-TEC is embarking on a strategic acquisition strategy in what Dallaire calls “the new era” for the company.
LOU-TEC is pursuing a strategic growth plan that will see expansion outside its home province. In what is the first move to start this ambitious new chapter, LOU-TEC recently partnered with Sagard Private Equity Canada (a company that focuses on Canadian middle-market opportunities, helping companies accelerate their growth trajectory) in an ambitious plan to increase market share and position the group as a major player across the country by 2030.
LOU-TEC’s track record of growth in a highly dynamic marketplace made it a natural fit with Sagard, whose capital investment will propel LOU-TEC’s current market presence and act as a bridge to new territory. LOU-TEC will also augment its product offerings to further establish its leadership in the Canadian equipment rental market.
Dallaire says the partnership with Sagard is a natural fit, not only economically, but culturally. LOU-TEC has always been a proudly Quebecois business, priding itself on its strong roots in the province and close ties with its customers and their needs. By partnering with Sagard, another Quebec-based company, that culture will only be strengthened, especially while expanding to regions in Ontario and Manitoba.
“We wanted to partner with a company that not only had the financial capacity to support ourgrowth, but to find the partner that is aligned with our business plan” says Dallaire. “We’re a really proud of the new partnership. It is great news for our employees, suppliers, and clients. In addition to the new capital injection, with Sagard experience team, and value added ecosystem, it will help Lou-tec achieve its goal to become a national leader in the highly competitive Canadian rental industry.”
Marie-Claude Boisvert, Partner and Head of Sagard PE, is confident this partnership will benefit customers, suppliers and employees alike. “Our investment in Groupe LOU-TEC is a great example of Sagard PE’s strategy of partnering with strong companies and working together with co-investors to accelerate their journey towards market leadership,” she says. “We have been impressed with LOU-TEC’s long track record of growth in a highly dynamic marketplace, and we are proud to partner with CEO Jean-Marc Dallaire and his team for our inaugural investment. We are happy to invest in people and in infrastructure to expand the Company’s presence in current, and new, geographies and product offerings to bolster LOU-TEC’s leadership in the Canadian equipment rental market.”
Investissement Québec and Walter Capital are also partnering with LOU-TEC as part of the acquisition with Sagard. “Walter Capital is delighted to team up with a company that has built a solid reputation in its market like LOU-TEC. We are looking forward to being actively involved along with Sagard, Jean-Marc Dallaire and his strong management team in propelling LOU-TEC’s growth and market leadership,” said Éric Doyon, Managing Partner of Walter Capital Partners.
Dallaire says, first and foremost, its the people behind the partnerships that will steer LOU-TEC in the right direction. “We can buy equipment easily,” says Dallaire, “but what is tough to do is to have the right people. So that’s why we believe in the acquisition strategy—because the people who make up the team will improve the odds and add to the success going into a new market.”