Temporary power solutions provider Aggreko is to buy Brazilian firm Poit Energia as it continues to expand into fast growing economies.
The firm will pay R$404m (£140m) with the potential for up to R$60m (£21m) to be paid in addition if performance targets for 2012 are met.
Poit Energia has operations in Brazil, Chile, Argentina & Peru and pulled in R$132m (£46m) of revenue in 2011.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The target firm offers power rental solutions, including generators, lighting towers, containers and loadbanks, as well as accessories such as cables, transformers and switchgear.
The combined business will have a total of 36 service centres across the region, doubling the number Aggreko has today.
"The acquisition...will materially strengthen Aggreko's business in South America, both in terms of geographic footprint and access to sectors which Aggreko is currently not in or to which it has limited exposure," the company said.
The deal is the fifth acquisition Aggreko has made in its 'local business' division in the last four years.
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
