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Aggreko plc agrees to acquire GE Energy Rentals for US$212 million

26 Sep 2006

Aggreko plc, a global provider of temporary power, temperature control and oil-free compressed air solutions, announces today that it has entered into a definitive agreement with General Electric Company (“GE”) to acquire substantially all the activities, other than those relating to large gas turbines, of GE Energy Rentals (“GE-ER”). 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.

Commenting on the transaction, Rupert Soames, Chief Executive of Aggreko, said: “This is an important acquisition for Aggreko and a milestone in the implementation of our strategy of driving the growth of our core business through capital investment in new fleet, geographic expansion and acquisitions. The acquisition of GE-ER substantially increases our rental fleet, improves our access to key regions, and brings experienced people who can support our growth. We will achieve valuable 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. We greatly look forward to welcoming them into the Aggreko team.”

A presentation to analysts will be held at the City Presentation Centre, 4 Chiswell Street, London EC1 at 11.30am on 26th September.

View the full press release (PDF, 98KB).

This document can be viewed using Adobe Acrobat® Reader, which is free to download.

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