(March 7th 2011)
Aggreko plc, the global leader in the supply of temporary power and temperature control solutions, has entered into an agreement to acquire N. Z. Generator Hire Limited ("N.Z. Generator"), a leading provider of temporary power solutions in New Zealand and the Pacific Islands.
The total consideration is NZ$27.5 million (£12.7 million); in the calendar year 2010, N.Z. Generator had revenues of NZ$13 million (£6.0 million) and net assets of NZ$22.5 million (£10.4 million). The agreement is contingent on the satisfaction of a number of pre-closing conditions usual for a transaction of this type.
The acquisition of N.Z. Generator supports Aggreko's strategy of expanding its Local businesses; the operations of Aggreko's existing business in New Zealand will be merged with those of N.Z. Generator and the combined entity will be the market leader in temporary power in New Zealand and the Pacific Islands. The acquisition will strengthen Aggreko's business in Australia-Pacific, and give Aggreko a total of 19 service centres across the region.
Headquartered in Auckland, N.Z. Generator began operations 20 years ago and has built a strong customer base within the domestic and Pacific rental power market. With a fleet of 156 generators providing 45 MW of power, N.Z. Generator operates out of five locations around New Zealand and also has several long-term contracts for power projects in the Pacific Islands.
Rupert Soames, the Chief Executive of Aggreko said: "We are delighted to have this opportunity to strengthen our business in New Zealand and the Pacific Islands, and we look forward to welcoming the employees of N.Z. Generator into the Aggreko team. This is the kind of bolt-on acquisition which adds value to our business, and follows the acquisition in December 2010 of Northland Power Services in the United States."
N.Z. Generator's service offerings and ethos match very closely with those of Aggreko: a reliable, responsive service with 24/7 availability, use of quality equipment and a strong commitment to safety. The acquisition of N.Z. Generator by Aggreko will serve to enhance the exceptional range of expertise and equipment available to new and existing customers in New Zealand and the Pacific. Philip Lendich, the current Managing Director of N.Z. Generator, will manage the combined business, which will trade under the Aggreko brand name.
Aggreko plc is the world leader in the supply of temporary power and temperature control solutions. Aggreko employs over 3,500 people operating from 144 locations. In 2009 we served customers in about 100 countries, and had revenues of approximately £1.0bn (USD $1.6bn or Euros €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. For more information, please visit the company website at www.aggreko.com
Aggreko provides temporary 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 centres, 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 2010 FIFA World Cup, the Vancouver 2010 Olympics, as well as power utilities and governments in around 50 countries including the UK, France, Angola, Kenya, Indonesia, Bangladesh, Venezuela, Chile, Brazil, Australia Pacific and the USA.
For more information, please visit the company website at: http://www.aggreko.com/ or http://www.aggreko.co.nz/