Aggreko to buy Brazilian firm

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.

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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.