Brazilian rental company Mills has acquired the equipment and rental operations of Next Rental Locações and its wholly owned subsidiary Linha Amarela Rental including all equipment and contracts related to the acquired operations but excluding debt for a grand total of R$ 180 million - roughly $33 million or €28 million. The transaction also includes an earn-out provision, subject to the achievement of certain targets.
Next Rental is a subsidiary of Pesa Empilhadeiras (Paraná Equipamentos) the Caterpillar distributor for southern Brazil.
It is based in Curitiba in the state of Paraná to the south west of São Paulo, with a branch in Betim in Minas Gerais north of Rio. Next Rental was only set up last year, following a previous acquisition by Pesa. Next focuses on the rental of Cat earthmoving equipment, forklifts, generators and a few aerial work platforms covering 14 Brazilian states. The transaction includes 738 machines which are managed by 210 employees.
The Next locations and coverage
The company announcement said: “The acquisition enhances Mills’ presence in the equipment rental market, expanding its installed base, diversifying its areas of operation, and enlarging its customer portfolio, in line with the company’s growth strategy. Additionally, it improves the efficient capital allocation and further consolidates Mills’ leadership position in its segments.”
The completion of the Transaction is subject to the approval of the Brazilian Antitrust Authority (CADE).
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