SCHENECTADY, N.Y. - GE Power Systems, parent of GE Energy Rentals, signed a definitive agreement last month to acquire Showpower Inc. for $28 million.
California-based Showpower, which is publicly traded on the American Stock Exchange, rents temporary power and temperature-control equipment on a worldwide basis for the entertainment, corporate and special event segments.
"Showpower is an ideal strategic fit for us," said GE Energy Rentals president Martin Moore. "Its employees possess the expertise we view as essential to success in mission: critical equipment rental markets worldwide."
The transaction will take the form of a tender offer of $7 in cash per share for all the outstanding shares of Showpower. Upon completion, Showpower CEO John Campion will join the management team of GE Energy Rentals.
"[This is] a unique opportunity ... to reshape the broader rental industry by leveraging GE Power Systems sales and services network as well as GE's brand recognition in virtually all markets," Campion said.