Aggreko confirms South American power rental business acquisition
Aggreko is to acquire Brazil-based Poit Energia as it looks to boost its operations in South America.
Aggreko is to acquire South American power solutions provider Companha Brasileira de Locacoes (Poit Energia) in a deal worth R$404 million (£140 million).
The FTSE 100-listed provider power generation equipment for hire will pay as much as R$60 million on top of the deal price should Poit Energia meet performance targets for the 12 months to December 31st 2012.
Aggreko may have enlisted the help of merger and acquisition advisors to complete the purchase, which it says will significantly strengthen its operations in South America.
Poit Energia, which is based in Brazil, has delivered a compound annual growth rate in revenues of 45 per cent over the past three years and Aggreko chief executive Rupert Soames said he is "delighted" with the deal.
"This is the fifth acquisition we have done in the local business in the last four years and we are confident that Poit Energia, like the others, will add value to Aggreko," he remarked.
The news helped Aggreko's share price to edge higher during early trading in London and at 08:48 BST it was priced at 2,257p, an increase of 15p.
Posted by Ken Hayes
Source: Aggreko press release, March 26th