Industry News - Mergers & Acquisitions - Aggreko plc Agrees to acquire GE Energy Rentals for US$212 million Aggreko plc Agrees to acquire GE Energy Rentals for US$212 million
by: OilOnline
Wednesday, September 27, 2006
Aggreko plc has entered into a definitive agreement with General Electric Company to acquire substantially all the activities, other than those relating to large gas turbines, of GE Energy Rentals. The maximum consideration, payable in cash, is US$212 million (£111 million).
Highlights
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.
Approximately US$35m of 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.
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