Aggreko , a global provider of temporary power, temperature control and oil-free compressed air solutions has entered into a definitive agreement with General Electric Company GE to acquire substantially all the activities of GE Energy Rentals GE-ER other than those relating to large gas turbines.
Supports Aggreko's strategy of growing its core business in power and temperature control by fleet investment, geographic expansion and acquisitions
Strengthens Aggreko's position in key geographies, notably in Central and South America, as well as adding scale in the United States, Europe, the Middle East, Asia and Australia
Increases Aggreko's core rental fleet capacity by c.30%
Improves Aggreko's capability in entertainment, emergency response and gas-fuelled power generation
Operating profit expected to be delivered by the acquired assets within 3-4 years.
EPS neutral in 2007, materially accretive thereafter return on invested capital above cost of capital by 2008.
According to Aggreko, this is an important acquisition for Aggreko and a milestone in the implementation of Aggreko’s strategy of driving the growth of its core business through capital investment in new fleet, geographic expansion and acquisitions.
The acquisition of GE-ER substantially increases rental fleet, improves access to key regions and brings experienced people who can support Aggreko’s growth.
Aggreko will achieve synergies in the enlarged group by removing duplicate infrastructure and overheads.
For the many GE-ER employees who will transfer to Aggreko as a consequence of the acquisition, it provides the opportunity to work for a company which is completely focused on energy rentals and which is a truly global player.