APR buys GE gas turbine rental business
By Murray Pollok24 October 2013
APR Energy has acquired GE’s international power rental projects business for US$314 million. APR will pay $64 million in cash with GE taking the remainder in APR shares, giving it a 16.5% stake in the power rental company.
The acquired rental business, which was part of GE’s Power & Water division, rents mobile gas turbines and has a power fleet of 520 MW. It currently has 20 large gas turbines rented on contracts in Bangladesh, Iraq, the US Virgin Islands, Canada, Australia and Dubai.
APR said the deal boosts its mobile turbine fleet to 1.2 GW, diversifies its geographical footprint, increases its fleet of natural gas gensets, a makes GE a strategic partner both in terms of ownership and for service and maintenance back-up.
GE sold its main diesel power rentals business to Aggreko in 2006, but has since been involved in the rental of large gas powered generators.
APR Energy's chief executive officer, John Campion, said the deal was an endorsement by GE of APR’s potential to be the leader in large-scale power projects and that it would transform the company; “By creating the world's leading fast-track mobile turbine power business and a long-term relationship with GE, we are well placed to deliver against an underserved and rapidly growing opportunity with the preeminent technology.
“The transaction diversifies our revenue base, gives us exposure to new geographies and sectors, and enhances our natural gas footprint."
Lorraine Bolsinger, CEO of GE's Power & Water Distributed Power business, said; “Our investment in APR Energy reinforces our strong belief in the distributed power segment, as well as APR's strong capabilities and prospects for success.
“We continue to see growing demand from customers urgently needing our leading technology for bridging solutions while more permanent solutions can be put in place. With this alliance, customers can get fast power with our technology from a premiere fast-track power provider, APR Energy, or they can buy the equipment from us."