APR Energy owner in buyout proposal

Atlas Corp, the owner of power rental specialist APR Energy, is assessing a proposal from private equity firms and its Chairman to acquire all shares and take the company into private ownership.

Atlas Corp, which also owns container ship leasing business Seaspan, said Poseidon Acquisition Corp offered US$14.25 per share on 4 August, valuing the business at just over $4 billion. Atlas has formed a committee of independent directors to evaluate the offer.

An APR Energy project in Mexico. (Photo: APR Energy website)

Poseidon comprises affiliates of Fairfax Financial Holding, members of the Washington Family, and David Sokol, the current Chairman of Atlas, who collectively already own more than 50% of the shares.

In early August, Atlas reported second quarter revenue growth of 4.9% to US$413.3 million, with net profits of $140 million.

Bing Chen, President and CEO of Atlas, described the perfomance as “strong” against a backdrop of global market turmoil, and added; “APR Energy continued to pivot the company to long-term, predictable cash flow opportunities. Our team has secured one new deployment in the second quarter, a dry rental with a Mexico-based counterparty representing 120 MW.

“The new contracts signed in the first quarter, including the 226 MW 44-month Brazilian contract, have commenced and evidence APR’s focus, and execution on longer-term and quality cash flow opportunities.”