Aggreko powers up its growing US presence

AGGREKO, the Glasgow-based temporary power provider, has increased its presence in the US oil and gas market with a deal worth up to £16.6 million.

The company's acquisition of Northland Power Services in Wyoming takes the number of Aggreko service centres in North America to 53.

Northland, which has forecast revenues of around 7.7m for 2101, operates from three locations and has around 57 megawatt (MW) of power fleet in its rental portfolio.

It specialises in providing power to customers throughout the Rocky Mountains' developing coal-bed methane and shale oil and gas resources.

Rupert Soames, Aggreko's chief executive, said: "This acquisition gives Aggreko an opportunity to grow in an important sector and develop our relationships with customers in the unconventional oil and gas markets.

"For Northland's existing customers, it will bring access to a broader range of equipment and services, as well as the resources and expertise of a global power rental business."

Soames added the oil and gas market was a key area of focus for the company with customers currently in the US and Canada, the North Sea, Russia, Asia, the Middle East and offshore Brazil.

Shares in Aggreko closed up 9p at 1,555p.