23rd Oct 2013 08:56
LONDON (Alliance News) - APR Energy PLC Wednesday said it will buy General Electric Co.'s power rental business for USD314 million in cash and shares, boosting its temporary power generation rental business significantly and bringing the US giant in as a key shareholder and strategic partner.
Under the deal, APR Energy will pay GE USD64 million in cash, and issue it 15.5 million shares worth USD250 million.
The Houston-based business being acquired makes and services mobile gas turbine equipment. It already has five rental contracts with 20 temporary power generation assets based in Bangladesh, Iraq, the US Virgin Islands, Canada, Australia and Dubai.
"The transaction diversifies our revenue base, gives us exposure to new geographies and sectors, and enhances our natural gas footprint," APR Energy Chief Executive John Campion said in a statement. "We are excited to be working closely with GE, whose partnership and equity commitment is an endorsement of our prospects and our ambition to be the leader in the large-scale, fast-track power industry."
"Our investment in APR Energy reinforces our strong belief in the distributed power segment, as well as APR's strong capabilities and prospects for success," Lorraine Bolsinger, head of GE's power and water business said.
APR Energy said it has also increased its credit facilities to USD650 million from USD550 million with its existing consortium of lenders.
In a trading update, it said it has performed in line with expectations between July 1 and October 23, with adjusted revenues coming in at USD84 million.
APR Energy shares were up 18.7% at 1,134 pence Wednesday morning, one of the biggest rises on the London main market.
By Steve McGrath; [email protected]; @SteveMcGrath1
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