Aggreko in Â£40m swoop for smart energy systems specialist
Temporary power provider Aggreko is acquiring a smart energy storage firm in a Â£40 million deal.
The Glasgow-based group said the purchase of Younicos, which is headquartered in Germany and the US, would help to strengthen its position in the global energy field and open up new markets.
Younicos, founded in 2005, delivers “modular and scalable” smart energy systems that integrate battery storage – technology that Aggreko said was “becoming critical in an increasingly distributed energy market”.
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Today’s deal comes just weeks after Aggreko snapped up an Indonesia rival in a deal worth up to $32.8m (£25.3m). Power rental company KBT has about 200 megawatts (MW) of diesel and gas contracts on hire with state-owned utility PLN, more than doubling the 140MW that Aggreko already has contracted with the electricity provider.
Announcing the Younicos takeover, Aggreko said the control of power and storage was crucial in maintaining stability and reliability of supplies amid the increasing deployment of renewable energy generation.
Chief executive Chris Weston said: “As a pioneer of smart energy solutions based on battery storage, Younicos is at the forefront of this trend.
“Together we are a powerful combination; our scale, fleet and global presence, coupled with a smart energy capability, will allow us to open up new markets and provide our customers around the world with a reliable, cheaper and cleaner source of energy.”
Younicos has more 200MW of installed storage systems. Its chief executive Stephen Prince, will remain with the business and report directly to Weston.
The firm generated revenues of £7m last year and made an operating loss of £15m. Aggreko expects the business to remain loss-making “in the short term”.
Prince said: “We are delighted to be joining with a market leading power provider in Aggreko. Batteries are an economically attractive and reliable asset which will play an increasing role as we transition from today’s energy market to the energy market of the future.
“Integration and management of multiple distributed energy sources will be necessary to optimise energy systems and deliver customers with greater stability at a lower economic and environmental cost.”