UK Temporary Generation Specialist Expands in Brazil

UK temporary power generation company Aggreko has agreed to pay BRL404m ($223m)in cash for Companhia Brasileira de Locacoes, or Poit Energia, a temporary power company in Brazil. The deal expands Agrekko’s existing presence in LatAm and involves an earn-out payment of up to BRL60m to be paid if the company meets performance targets for the end of 2012, Aggreko says. Aggreko plans to finance the acquisition by tapping its existing debt facilities. Officials at Aggreko and at Poit Energia could not immediately be reached for comment. Last year, Poit Energy had an Ebitda of BRL44m, based on company estimates, meaning the price paid for the company comes in at a 9.18x Ebitda multiple, not including any additional amount paid in the form of an earnout. Aggreko estimates that it will have 36 service centers across Latin America with South American revenues reaching BRL555m. Sao Paulo-based Poit Energia generates revenues from temporary power rental solutions such as generators and lighting towers.