GAM invests in Mexico, reveals first half growth

Spanish rental company has a acquired a 60% share of Mexican rental and sales company Ozmaq, which is based in San Luis Potosi, central Mexico.

Ozmaq was founded in 1983, operates from five locations, and has annual revenues of around €10 million. It rents aerial platforms, sells and rents industrial forklifts, and is Mexican distributor of Brokk demolition robots. It also rents Brokk machines.

GAM’s results for the frirst half of 2023. (Source: GAM Alquiler)

The addition of Ozmaq will boost GAM’s existing rental business in Mexico, where it already has four locations. GAM also operates in Chile, Columbia and Peru.

The deal is part of GAM’s wider strategy to become a €500 million revenue business by the year 2026, with growth outside its home market of Spain being a key part of the plan.

The acquisition was announced as GAM issued its financial results for the first half of the year. Revenues were up 22% year-on-year to €130.7 million. EBITDA rose 25% to €34.4 million, and net profits of €4.0 million compared to €2.4 million in the first half of 2022.

The company reported growth in all its business lines. Long term rental revenues increased by 38% to €32 million, while short term rentals – its largest business – rose by 15% to €50.2 million.

The second largest business line is what GAM calls ‘businesses without CapEx’, including equipment sales, maintenance and training. Here, revenues increase by 19% to €48.5 million.

In addition to the Ozmaq deal, during the first half of 2023 GAM became full owner of GAM Arabia in the Middle East, in which it previously had a 50% stake.