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Acquisition

3rd Dec 2010 07:00

RNS Number : 3231X
Aggreko PLC
03 December 2010
 



 

 

 

3 December 2010

 

 

AGGREKO ACQUIRES US POWER RENTAL BUSINESS

 

Aggreko, the global leader in temporary power and temperature control, announced today that it has acquired Northland Power Services ("Northland"), a leading provider of power solutions for the oil and gas exploration and production market in the Rocky Mountain region of the United States, for a maximum consideration of $26 million. Headquartered in Gillette, Wyoming, Northland operates out of three locations, has around 57 MW of power fleet and has forecast revenues for 2010 of around $12m. The acquisition will take the number of Aggreko service centres in North America to 53, and the number of employees to over 800.

 

The oil and gas market is a key area of focus for Aggreko, both in North America and worldwide. In Russia, Asia, the Middle East, the North Sea, and off-shore Brazil, Aggreko provides specialist power and temperature control services to this important sector. In North America, Aggreko serves production and exploration customers in the Gulf of Mexico, Texas and Louisiana, and in 2008 acquired Power Plus Rentals and Sales in Alberta, which enabled it to serve the Canadian market. The acquisition of Northland gives Aggreko a strong presence in a fast-growing part of the market and one which is important both in terms of giving access to a new geography and because Northland brings expertise in providing power to customers developing coal-bed methane and shale oil and gas resources.

 

Rupert Soames, Chief Executive of Aggreko said: "This acquisition gives Aggreko an opportunity to grow in an important sector and develop our relationships with customers in the unconventional oil and gas markets. For Northland's existing customers, it will bring access to a broader range of equipment and services, as well as the resources and expertise of a global power rental business."

 

For more information contact:

 

Aggreko plc

Rupert Soames, Chief Executive

Angus Cockburn, Finance Director

+44 141 225 5900

 

Maitland

Neil Bennett

George Hudson

+44 20 7379 5151

 

Editor's Notes

 

Aggreko plc is the world leader in the supply of temporary power and temperature control solutions. Aggreko employs over 5,000 people operating from over 144 locations. In 2009 we served customers in about 100 countries, and had revenues of approximately £1.0bn ($1.6bn or €1.1bn). Aggreko plc is listed on the London Stock Exchange (AGK.L), is a member of the FTSE-100 index, and is headquartered in Scotland.

 

Aggreko provides power and temperature control solutions to customers who need them either very quickly, or for a short or indeterminate length of time. Examples would be the supply of power to an industrial site which needs to service its permanent power supply, supplying a whole city in times of power shortage, or providing a major sporting event with power and cooling systems. We serve our customers either through our 144 service centers, which we call the Local Business, or globally through our International Power Projects business.

 

In the Local business, which accounts for about half of our revenues, we hire our equipment to customers, who then operate it for themselves, although we retain responsibility for servicing and maintaining it. In the International Power Projects business, which also accounts for about half of our revenues, we operate as a power producer. We install and operate power plants and we charge our customers both for providing the generating capacity, and for the electricity we produce. We design and manufacture equipment specifically for these requirements in our factory in Dumbarton, Scotland.
 

Recent customers include the Beijing 2008 Olympics, the Vancouver 2010 Winter Olympics and the power utilities in over 50 countries including the UK, France, Angola, Kenya, Indonesia, Bangladesh, Venezuela, Chile, Brazil and the USA.

 

For more information, please visit the company website at: www.aggreko.com.

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
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