HOUSTON & GILLETTE, Wyo.--Aggreko, al leader in temporary power and temperature control, announced today that it has acquired Northland Power Services (Northland), a 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 over 57 MW of power fleet and has forecast revenues for 2010 of around $12M. The acquisition will take the number of Aggreko service centers in North America to 53, 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.
This acquisition combines the strength of two market leaders to give our oil and gas customers an unparalleled range of equipment and services options, said George Walker, President, Aggreko North America. It also gives Aggreko an opportunity to further support an important niche within our U.S. and Canadian oil and gas growth markets.
Aggrekos acquisition of Northland will add 24 experienced and skilled employees. Aggrekos equipment offering will expand to include more than 350 additional large and well-maintained power generators with the total fleet ranging from 60 kW to 2000 kW for diesel units and from 65 kW to 1300 kW for natural gas generators.
We are pleased to join Aggrekos growth strategy for the regions we have served since our companys inception, said Dwaine Williams, CEO, Northland Power Services. Aggreko shares the same passion, can-do attitude, and commitment to available inventory, equipment reliability and service excellence that we have built our reputation around.
Aggreko plc is the world leader in the supply of temporary power and temperature control solutions. Aggreko employs over 4,000 people operating from over 144 locations. In 2009 we served customers in about 100 countries, and had revenues of approximately GBP 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 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 Olympics and the power utilities in over 50 countries including the UK, France, Angola, Kenya, Indonesia, Bangladesh, Venezuela, Chile, Brazil and the USA.
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