Mills Solaris takes majority stake in Nest Rental
29 April 2021
Brazil-based Mills has announced that its subsidiary Solaris has acquired 51% of Nest Locação e Revenda de Máquinas (Nest Rental), based in São Paulo.
Founded in 2018, Nest Rental specialises in low level access platform rental and is the exclusive distributor for JLG in this sector. Mills Estrutura e Serviços de Engenharia (Mills) said it will use the investment in Nest, which also provides online sales through its web-based offering, to increase its focus on low level access and strengthen its digital initiatives for customers, while expanding the company’s facilities.
The deal follows Mills’ acquisition of SK Rental Locação de Equipamentos (SK Rental) earlier this month for R$80 million (US$14 million). SK Rental is based in southern Brazil and operates a fleet of more than 300 rental units.
Nest Rental will add a further 115 units to the fleet, along with a forecasted revenue of R$4 million (US$740,000) for 2021. Solaris, which merged with Mills in May 2019, is set to invest R$5.1 million (US$950,000) in Nest, R$3 million (US$560,000) of which will support its growth.
Solaris will have the opportunity to acquire the remaining 49% of Nest Rental in 2025, at 6.25 times the value of the company’s adjusted Earnings before interest, taxes, and amortisation (EBITA), if it so chooses. Mills added that the acquisition of Nest Rentals was in line with the strategy to concentrate its non-core business in the Solaris subsidiary.