Aggreko buys Indonesian power rental rival for £25m
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The Glasgow-based group said 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.
KBT was set up in 1993 and has been serving the power rental market since 2010.
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Hide AdThe acquisition comes after Aggreko said in April that its annual profits were on course to come in lower than last year, despite unveiling a rise in first-quarter revenues. Having earlier warned on earnings after flagging a “significant impact” from contracts in Argentina, the firm told investors that reported revenues for the three months to the end of March were up 18 per cent.
At its power solutions division, which focuses on emerging economies, industrial revenues jumped 17 per cent on the back of “strong performances” in Eurasia and the Middle East, but the group said conditions in Asia and Latin America continued to prove more challenging.
Aggreko chief executive Chris Weston said today: “Aggreko has had a long and productive relationship with PLN and Indonesia, and this acquisition will deepen this further.
“PLN has been clear in its ambition to improve the power situation in east Indonesia in particular, and we will be well placed to support this with our extended presence and competitiveness.”