Aggreko plc, global leader in the supply of temporary power and temperature control solutions, has reached an agreement to acquire N.Z. Generator Hire Ltd., a temporary power rental company in New Zealand and the Pacific Islands for a price of NZ$27.5 (about U.S. $20.3 million).
NZG had revenues of NZ$13 million in 2010.
The purchase supports Aggreko’s strategy of growing its “Local” business segment. The operations of Aggreko’s existing business in New Zealand will merge with those of NZG and will give Aggreko 19 service centers in the Australia-Pacific region.
Based in Auckland, N.Z., NZG began operations 20 years ago and has a strong customer base in the region, with a fleet of 156 generators providing 45 megawatts of power. The company has five branches in New Zealand and has several long-term contracts for power prospects in the Pacific Islands.
“This is the kind of bolt-on acquisition which adds value to our business, and follows the acquisition in December 2010 of Northland Power Services in the United States,” said Aggreko chief executive Rupert Soames.
Current managing director of NZG Philip Lendich will manage the combined business, which will adopt the Aggreko name.
Based in Scotland, with U.S. headquarters in Houston, Aggreko North America is No. 9 on the RER 100.