Aggreko buys Rocky Mountain oil and gas rental company
By Murray Pollok03 December 2010
Aggreko has acquired Northland Power Services, a power rental company that services oil and gas companies in the Rocky Mountain region of the US. The price is US$26 million.
Northland is based in Gillette, Wyoming and operates from three locations. It has 57 MW of power fleet and forecast revenues of around $12 million in 2010. The acquisition increase the number of Aggreko branches in North America to 53.
Aggreko said that the oil and gas market is a key area of focus in North America and worldwide. The Northland acquisition gives it a strong presence in a fast-growing part of the market, and in particular adds expertise in renting power to companies developing coal-bed methane and shale oil and gas.
Rupert Soames, chief executive of Aggreko, said: "This acquisition gives Aggreko an opportunity to grow in an important sector and develop our relationships with customers in the unconventional oil and gas markets.
"For Northland's existing customers, it will bring access to a broader range of equipment and services, as well as the resources and expertise of a global power rental business."