Mills and Solaris to merge
Brazilian rental company/contractor Mills and aerial lift rental company Solaris have confirmed that the merger they have been negotiating since September will now go ahead. See Brazil’s Mills and Solaris to merge?
The Merger agreement gives Solaris shareholders a 30.5 percent stake in Mills, they will also have certain approval rights for the appointment of main board directors, although Mills shareholders will retain the right to appoint the majority of the board.
The deal will create by far the largest aerial lift rental fleet in South America, combining two of the largest players in Brazil. Solaris sells and rents aerial lifts, telehandlers and generators and was formed by Sullair in 1997 in partnership with JLG. By 2003 it had merged with the rental division of Sullair Argentina and has been owned by private equity firm Southern Cross since 2013. It runs a fleet of around 4,000 units from 21 locations with 500 employees.
A company statement today said: “With the business combination, the company aims to strengthen its outstanding position in the equipment rental industry with a more attractive business portfolio and increased capability to service customers of variable economy sectors and regions of Brazil combining with better operational practices and the teams of both companies. In addition, there will be better perspectives of growth and profitability, through the optimisation of the operations and absorption of potential synergies, resulting in value for its shareholders.”