APR Energy to buy GE's power rental business for $314 million
(Reuters) - Temporary power provider APR Energy Plc (APREN.L) said it would buy General Electric Co's (GE.N) power rental business for $314 million in cash and stock, making GE a strategic investor in the company.
GE will receive $64 million in cash and 15.5 million APR Energy shares valued at about $250 million.
The company said the acquisition of a unit of GE Power & Water in Houston, which is involved in manufacturing and servicing mobile gas turbine equipment, was expected to add to earnings, but did not provide a time frame.
"The transaction diversifies our revenue base, gives us exposure to new geographies and sectors, and enhances our natural gas footprint," APR Energy Chief Executive John Campion said in statement.
The company also said on Wednesday adjusted revenue during the third quarter was $84 million.
A provider of turnkey power plants for disaster relief, electricity shortfalls and major events, APR Energy's clients are mostly located in developing markets such as Argentina, Burkina Faso and Yemen where demand for readily available energy has been increasing.
Shares in APR Energy, whose turbines and diesel generators lit up Japan following the 2011 earthquake, jumped 17 percent to 1106.75 pence in early trade, making them the top percentage gainers on the London Stock Exchange.
(This story corrects paragraph three to ... a unit of GE Power & Water..., not .... GE Power & Water...)(Reporting by Karen Rebelo in Bangalore; Editing by Akshay Lodaya)