Mills moves into forklift market

Photo: Mills

Mills, the largest rental company in Brazil, is to acquire JM Emphilhadeiras Holding De Participações in a R$279.5 million (€50 million) deal.

Founded in 1985, JM Emphilhadeiras is based in Agudos in the central west region of São Paulo.

The company operates one of the largest forklift rental fleets in the country, with a fleet of more than 1,900 machines.

Last year it generated revenues of R$153.5 million (€27 million) and an EBITDA of R$65.0 million (€11 million).

Mills said the deal, which has been approved by its board of directors, is part of its strategy to become a “one-stop-shop rental company.”

It predicts that the forklift rental and related intralogistics equipment market generates approximately R$14 billion in annual revenue following significant growth and new machine entries into the market in recent years. 

Mills added that the transaction will enable it to strengthen its customer relationships by creating cross-sell opportunities and expanding its share, and provide a diversified customer portfolio and long-term contracts.

The deal, which is subject to the fulfillment of certain customary conditions, will see Mills pay 50% upfront and the remainder over the next 3 years, plus an earn-out, which will be paid based on the achievement of operational metrics, starting 2029, extendable until 2030.

It also comes at a time in which the company is noting considerable growth, having reported a 25% increase in revenues for the 2023 financial year back in March. 

The company said the rise in revenues was partly down to its strategy to invest in its heavy rental fleet, with Mills quadrupling its fleet size in the segment in 2023.