# Loxam Buys Mills in Deal That Could Reach R$3.75 Billion

*French group will initially pay about R$1.9 billion for control of the company, with a mandatory tender offer that could lift the total value if minority investors sell their shares.*

- Published: 2026-05-25
- Section: Insights
- Tags: Brazil M&A, Brazilian stocks, Cade, Infrastructure, Novo Mercado, tender offer
- URL: https://brazilstockguide.com/insights/loxam-mills-deal-r19-billion/

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**By Brazil Stock Guide –** French equipment rental group **Loxam SAS** agreed to buy control of **Mills Locação, Serviços e Logística S.A. (MILS3)** in a transaction that could reach about **R$3.75 billion** once the mandatory tender offer for minority shareholders is included. The initial agreement covers **50.3% of Mills’ share capital** for roughly **R$1.9 billion**, at **R$16.00 per share**, a **22% premium** to the May 22, 2026 closing price, with the full amount to be paid in cash at closing.

The price for the controlling block will be adjusted from the 31st day after the material fact until the effective closing of the transaction by **70% of Brazil’s CDI interbank rate**. After the transfer of control is completed, Loxam will be required to launch a **mandatory tender offer** for the remaining Mills shares at the same price paid to the controlling shareholders, adjusted by Brazil’s **Selic** benchmark interest rate between closing and settlement of the offer.

**Global control**

The transaction places Mills under the umbrella of the largest equipment rental company in Europe. Founded in 1967, **Loxam** reported **€2.5 billion in net revenue in 2025**, has about **11,600 employees** and operates a network of roughly **1,130 branches** in more than **28 countries** across four continents. In Brazil, the company has been present since 2015 through **Loxam do Brasil** and **A Geradora**.

For Mills, the deal closes a chapter of founder-family control and opens a new phase of consolidation in a sector directly exposed to construction, infrastructure, industry, energy, events and services. The company said its founding family had long sought to preserve Mills’ legacy by bringing it closer to relevant global players, and that Loxam’s interest in expanding in Brazil made the transaction a complementary step with potential value creation for stakeholders.

**A Brazilian platform**

Mills is not a small bolt-on acquisition. Founded in **1952**, the company spent more than seven decades moving from scaffolding and shoring into a broader equipment rental platform, with its **2010 IPO** marking the start of life as a listed company. In recent years, it reshaped the business after a turnaround, expanded in aerial work platforms, entered yellow-line equipment, moved into intralogistics and added **Next Rental** to its portfolio.

That evolution turned Mills into what it describes as **Brazil’s largest rental company**, with more than **10,000 clients**, around **65 branches**, more than **2,000 employees** and the largest fleet of electric equipment in Latin America. Its portfolio now stretches from aerial platforms, compressors, generators and lighting towers to excavators, loaders, compactors, forklifts, pallet trucks, formwork and shoring systems.

The company is also less dependent on a single construction cycle than it once was. Mills says **55% of rental revenue** now comes from long-term contracts, while its 2025 rental mix shows a broader platform: **46% from aerial work platforms**, **24% from yellow-line equipment and adapted trucks**, **16% from formwork and shoring**, **11% from forklifts and pallet trucks**, and the rest from other products.

The latest results help explain Loxam’s appetite. In the first quarter of 2026, Mills reported **R$235.1 million in adjusted EBITDA**, up **13.8%** from a year earlier, with an adjusted EBITDA margin of **50.3%** and **ROIC of 20.5%**. Leverage stood at **1.1 times net debt to EBITDA**, with an average debt cost of **CDI + 1.08%** and about **95% of debt maturing in the long term** — the profile of a platform that can be scaled, not a distressed asset that needs to be fixed.

**Mandatory offer**

The acquisition remains subject to customary closing conditions, including approval from **Cade**, Brazil’s antitrust regulator. Once the transaction is completed, Loxam will have to launch a **public tender offer** to acquire all remaining Mills shares at the same price paid to the controlling shareholders, adjusted by Selic from the closing of the control transfer until the settlement of the offer.

That mechanism is what can take the transaction from an initial **R$1.9 billion control purchase** to a potential **R$3.75 billion full-equity deal**, depending on the level of minority shareholder participation in the tender offer. The structure is designed to ensure equal treatment for minority investors under Brazilian corporate law, CVM rules, Novo Mercado regulations, Mills’ bylaws and the agreement itself.

Mills and the sellers were advised by **Lazard**, **Trindade Sociedade de Advogados** and **Lefosse Advogados**. Loxam was advised by **Euro Latina Finance**, **Spinelli Advogados** and **Demarest Advogados**.

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Source: Brazil Stock Guide, https://brazilstockguide.com/insights/loxam-mills-deal-r19-billion/