APR Energy Acquires GE Power & Water’s Power Rental Business

Oct. 23, 2013

Power generation provider APR Energy announced on its website that it has agreed to acquire the power rental business of General Electric. GE Power & Water is a global leader in manufacturing and servicing mobile gas turbine equipment, with principal operations in Houston. GE is a provider of temporary power generation rental through its mobile gas turbines of less than 50 MW.

The GE business to be transferred includes five associated rental contracts with 20 temporary power generation assets based in Bangladesh, Iraq, the U.S. Virgin Islands, Canada, Australia and Dubai. The acquisition advances APR Energy towards its stated strategic goals of creating the world’s leading fast-track mobile turbine fleet of 1.2 GW, significantly strengthening and diversifying APR Energy’s business, and creating a long-term strategic alliance with GE.

Under the terms of the acquisition agreement, GE will receive a total consideration of $314 million, of which $250 million will be satisfied by issuing to GE 15.5 million shares of APR Energy plc stock, with the remaining $64 million in cash.

APR’s board believes the acquisition benefits the group and its shareholders by creating a long-term strategic alliance with GE, providing dedicated supply for the fast-track, turnkey power segment, making GE a key strategic investor in APR Energy. The deal also strengthens APR Energy’s global footprint and contract revenue base, providing access to newly developed and developing countries, and improves APR Energy’s footprint in natural gas, a growing fuel source.

“This is a transformational transaction for APR Energy, allowing us to move forward rapidly towards delivering our stated medium-term business objectives,” said APR Energy CEO John Campion. “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.”

“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,” added GE’s Power & Water Distributed Power CEO Lorraine Bolsinger. “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.”