Aggreko Power Rental Moves into India
Purchase of Cummins Power Rental business in India and disposal
of European Oil-Free Compressed Air business
Aggreko PLC, the world leader in power
rental, 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 oil-free
air 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.