A group of investors including hedge fund billionaire George Soros and Albright Capital Management, run by former U.S. Secretary of State Madeleine Albright, is buying Jacksonville, Fla.-based temporary power rental business APR Energy for a combined equity consideration of about $855 million. The payment will be $359 million in cash and the issue of 32.1 million new Horizon shares. The management of APR and its organization will remain unchanged, the company said.
The group of investors, known as Horizon Acquisition Co., is listed on the London Stock Market. The company’s shares have been suspended to rename Horizon as APR Energy plc.
Originally formed by John Campion, CEO, and Laurence Anderson, chief operating officer, through the buyout of Alstom’s power rental business in 2004, APR said it is the No. 2 player to Aggreko in the expanding global market for gas- and diesel-powered temporary power plants. APR’s revenue in 2010 was $125 million, with an average fleet capacity of 286 MW. As of December 31, 2010, APR’s fleet capacity was 358 MW, a 68-percent increase compared with the end of 2009.
“We believe APR Energy is a great investment, offering both immediate value and outstanding potential for our shareholders,” said Horizon chairman Mike Fairey. “We see its proven track record in a fast-growing global marketplace, with historical returns on capital of more than 30 percent, as only the start of what it can achieve. The acquisition is at an attractive price relative to its quoted peer, the injection of our cash accelerates APR Energy’s ability to grow and its stock market listing will enhance its reputation and provide further access to growth capital if required.”
“By reversing into Horizon, APR Energy becomes a publicly listed company,” said APR CEO Campion. “We accelerate our ability to grow with an immediate injection of new capital and long-term access to capital markets that truly understand our business and we reinforce our commitment to our customers across the world.”
With much of the developing world unable to upgrade power infrastructure quickly enough to meet demand, the temporary power market is viewed as increasingly attractive to investors. Soros Fund Management and Albright Capital Management will own about 14 and 13 percent respectively of Horizon’s share capital, according to reports.