(3 December 2010)
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."