Purchase of Cummins Power Rental
business in India and disposal of European Oil-Free Compressed Air
business
Aggreko PLC, the world leader in
the supply of temporary power, temperature control and oil-free
compressed air services, announces that it has signed agreements on
two transactions.
- The first involves the
purchase of the business and assets related to power rental of
Cummins in India.
- The second involves the
sale of Aggreko's European oil-free compressed air ("OFA") rental
business to Atlas Copco.
The purchase of the power rental
business of Cummins India Ltd (CIL) is for a total consideration,
payable in cash on completion, of INR291 million (GBP3.9 million)
and is subject to the approval of CIL's shareholders. The business
being acquired is forecast to have revenues in 2008 of about INR179
million (GBP2.4 million) and net assets at 31st December 2008 of
approximately INR79 million (GBP1.1 million).
The sale of Aggreko's European OFA
rental business to Atlas Copco is for a total consideration,
payable is cash on completion of Euro14.6 million (GBP12.3
million). The European OFA business is expected to have revenues in
2008 of about Euro8.7 million (GBP7.3 million) and net assets at
completion of approximately Euro5.0 million (GBP4.2 million). The
transaction is subject to clearances by the relevant regulatory
authorities.
Commenting on the transactions,
Rupert Soames, Chief Executive of Aggreko, said: "These
transactions are in line with our strategy of focusing our capital
investment in growing markets where attractive returns can be
achieved. Our investment in India means we will have achieved one
of our strategic objectives, which is to have operations on each of
the four largest developing economies in the world (the others
being Brazil, Russia and China).
Oil-free air is the smallest of our
product groups, and while we have a large and successful OFA rental
business in North America in which we will continue to invest, we
do not believe that our European OFA business has the scale to
warrant further investment".
Aggreko was advised on the OFA
transaction by Tricorn Partners LLP.
For further enquiries:
Aggreko PLC
Rupert Soames
Chief Executive
Angus Cockburn
Finance Director
Tel: +44 141 2255900