Mills Estruturas e Serviços de Engenharia S.A. (Mills) announced that it entered into a purchase and sales agreement to acquire 25% of the voting and total capital stock of Rohr S/A Estrutura Tubulares (Rohr) for R$ 90 million.

Rohr is a privately held company specialized in access engineering and solutions for civil construction and has 45 years of experience in this market. The company serves sectors such as heavy construction and infrastructure, residential and commercial construction, industrial maintenance and events.

In 2009, Rohr’s net revenues and net earnings, both audited, were R$ 163 million and R$ 33 million, respectively. Additionally, its cash generation, measured by EBITDA, was R$ 62 million. As of December 31, 2009, its net cash position was R$ 77 million.

Mills said this strategic acquisition will enable it broaden its exposure to the sectors it serves - infrastructure, residential and commercial construction, oil & gas industry, among others - through investment in a company with solid market reputation, competent management, strong financials and profitability compatible to Mills.

This investment is supplementary to Mill’s organic growth plan that involves estimated investment of R$ 1.1 billion over the period 2010-2012, in order to enable its geographic expansion in Brazil and to meet the strong and growing demand from the Brazilian infrastructure and real estate sectors, driven by the expansion in home loans, by the Programa de Aceleração do Crescimento (PAC) and by investments for the 2014 World Cup, the 2016 Olympics Games and in the oil & gas industry.

Mills said it will continue to analyze strategic acquisition opportunities that offer attractive return to its shareholders. Just last week, Mills announced that its capex budget for 2011 involves capital expenditures of R$ 337.2 million, almost all dedicated to the purchase of equipment to meet the huge demand in the markets it serves.

The expected capex for 2011 is part of Mills’ plan to invest R$ 1.1 billion over the 2010-2012 period. In the first nine months of 2010, Mills’ realized capex totaled R$ 269.7 million, or 79.8% of 2010 capex budget of R$ 338 million.

Of the 2011 budget, R$ 136.4 million will be invested in the Jahu division, representing 40.4% of total capex for 2011, while the Rental division will receive investments of R$ 128.9 million, 38.2% of total capex. Mills’ plans to invest R$ 39.9 million, 11.8% of total capex, and R$ 24.8 million, 7.4% of total capex, in the Heavy Construction and Industrial Services divisions, respectively.

24 Jan 2011.