Aggreko, a provider in temporary power and temperature control, announced that it has acquired Northland Power Services, a provider of power solutions for the oil and gas exploration and production market in the Rocky Mountain region of the United States, for US$26 million.
Headquartered in Wyoming, USA, Northland operates out of three locations, has over 57 MW of power fleet and has forecast revenues for 2010 of around $12 million. The acquisition will take the number of Aggreko service centres in North America to 53, the number of employees to over 800.
Aggreko said that the oil and gas market is a key area of focus for it, both in North America and worldwide. In Russia, Asia, the Middle East, the North Sea, and off-shore Brazil, Aggreko provides specialist power and temperature control.
In North America, Aggreko serves production and exploration customers in the Gulf of Mexico, Texas and Louisiana, and in 2008 acquired Power Plus Rentals and Sales in Alberta, which enabled it to serve the Canadian market.
The acquisition of Northland will allow Aggreko expand its operations into new geographies serving customers developing coal-bed methane and shale oil and gas resources.
“This acquisition combines the strength of two market leaders to give our oil and gas customers an unparalleled range of equipment and services options,” said George Walker, president, Aggreko North America. “It also gives Aggreko an opportunity to further support an important niche within our US and Canadian oil and gas growth markets.”
Aggreko’s acquisition of Northland will add 24 employees. Aggreko’s equipment offering will expand to include more than 350 additional large power generators with the total fleet ranging from 60 kW to 2000 kW for diesel units and from 65 kW to 1300 kW for natural gas generators.
“We are pleased to join Aggreko’s growth strategy for the regions we have served since our company’s inception,” said Dwaine Williams, CEO, Northland Power Services. “Aggreko shares the same passion, can-do attitude, and commitment to available inventory, equipment reliability and service excellence that we have built our reputation around.”
