Temporary power specialist Aggreko last week said there would be a “net reduction” of its 40 locations in North America and 30 in Europe.
“It’s rejigging rather than rape and pillage,” said CEO Rupert Soames. “We’re closing some and opening others.” Company officials said that early findings from its strategic review showed that the businesses on both sides of the Atlantic required some reorganization.
The company said it would be taking an exceptional charge of no more than 15 million British pounds, or about $26.3 million to restructure its North American and European network of “depots.”
Despite the restructuring charge, Aggreko shares rose slightly on the London Stock Exchange based on comments that “there are some early indications” that the oversupply of power rental equipment in North America “may be stabilizing.” Aggreko added it recently won its first big utility contract in South America.
Aggreko, which has its North American headquarters in New Iberia, La., is No. 11 on the RER 100.
