26th March 2012
• Aggreko plc to acquire Poit Energia for R$404 million (£140 million)
• Poit Energia has operations in Brazil, Chile, Argentina & Peru; 2011 revenues R$132 million (£46 million)
• Business has delivered 45% compound annual growth in revenues over last three years with strong margins
• Acquisition materially strengthens Aggreko’s position in South America
Aggreko plc has entered into an agreement to acquire the entire share capital of Companha Brasileira de Locacoes (“Poit Energia”), a leading provider of temporary power solutions in South America. The consideration is R$404 million (£140 million) payable in cash on completion with the potential for up to R$60 million (£21 million) to be paid in addition if performance targets for the year to 31 December 2012 are met. The consideration will be settled from Aggreko’s existing debt facilities. The agreement is contingent on the satisfaction of a number of pre-closing conditions and third-party consents usual for a transaction of this type.
For the calendar year 2011, Poit Energia had audited revenues of R$132 million (£46 million); Earnings Before Interest, Tax, Depreciation and Amortisation of R$44m (£15.3 million); and net operating assets as at 31 December 2011 of R$151 million (£52 million). Over the last three years the business has delivered a compound annual growth rate in revenues of 45%, and delivers trading margins in excess of 20%.
The acquisition of Poit Energia supports Aggreko’s strategy of expanding its Local businesses in fast growing economies; it 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 combined business will have a total of 36 service centres across the region, doubling the number Aggreko has today; the aggregate revenues of Poit Energia and Aggreko in 2011 in South America were R$555 million (£193 million).
Founded in 1999, Poit Energia offers complete power rental solutions, including generators, lighting towers, containers and loadbanks, as well as accessories such as cables, transformers and switchgear. As of December 2011 Poit Energia had a fleet of over 1,300 generators equating to around 350MW and employed over 450 people. Poit Energia is headquartered in Sao Paulo and operates from 14 locations in Brazil, two in Chile and one each in Argentina and Peru.
Rupert Soames, the Chief Executive of Aggreko said: “We are delighted to have this opportunity to further strengthen our business in South America, which has been one of the fastest-growing parts of our business over the last three years, and we greatly look forward to welcoming the employees of Poit Energia into the Aggreko team. 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”.
Wilson Poit, the founder and Executive Chairman of Poit Energia said: “We have long admired Aggreko, and have the same focus on specialist, high quality, energy rental; as a consequence, our businesses are very similar, and have a very similar ethos. Poit Energia has now come to the point at which its further development is best done within a larger group, which will allow our customers and staff to benefit from the resources and opportunities Aggreko can bring them”.
Poit Energia’s service offerings match very closely with those of Aggreko: a reliable, responsive service with 24/7 availability, use of quality equipment and a strong commitment to safety. The acquisition of Poit Energia by Aggreko will serve to enhance the exceptional range of expertise and equipment available to new and existing customers in South America. Wilson Poit and his experienced management team will continue to manage Poit Energia during the earn-out period, following which the operations will be merged with Aggreko’s business in South America.