Aggreko expands North American presence with £18m acquisition
PORTABLE power supplier Aggreko has expanded its presence in the North American market with the £18m acquisition of a Canadian company.
The Cannock-based operation said that in line with its business priorities, it had entered into a deal to acquire the equipment rental business of ICS Group, which is a leading provider of mobile temperature control services in Canada.
The total consideration is C$37m (£18m) and in the 12 months to July 2015, ICS had revenues of C$18.2m (£8.9m).
Aggreko said the deal was contingent on a number of pre-closing conditions being satisfied which were usual for a transaction of this type.
The company said the acquisition would not only establish Aggreko in the North American heater market, it would provide a geographic footprint in cities such as Calgary and Winnipeg where the company does not currently operate. It also complements many of Aggreko’s key sectors including oil & gas, industrial and events.
As part of the deal, 60 staff from ICS will transfer to Aggreko, along with more than 2,100 fleet assets. They will be incorporated into Aggreko’s Rental Solutions business.
Following a period of transition, Aggreko plans to integrate the operations of ICS with its Western Canada business, before expanding into other areas within North America.
Chris Weston, Chief Executive, Aggreko said: “The acquisition of ICS enhances our temperature control business in North America and gives our customers an unparalleled range of equipment and service options. Temperature control products are used extensively in our target sectors and benefit our core business as they generally require associated power. Today’s announcement underlines Aggreko’s clear commitment to deliver growth both organically and through bolt-on acquisitions.”