British entrepreneur aims to fund expansion of US company to compete with larger rival Aggreko
The buyout vehicle set up by British entrepreneur Hugh Osmond has spent �850m buying a US energy company that plans to expand the market for international temporary power generation services.
Osmond's company, Horizon, which was listed on the London market last year, will take a 60% stake in APR Energy, a Florida-based firm that specialises in supplying generators to developing-world countries and regions suffering temporary electricity shortages such as the tsunami-hit region of Japan.
The deal follows an injection of cash earlier this year from George Soros's hedge fund, Quantum Strategic Partners, and Albright Capital Management, the investment vehicle of the former US secretary of State Madeleine Albright.
The company plans to expand its fleet of power generators to compete with its larger listed rival, Aggreko.
It is understood that APR was generating 30% return on capital and strong cash flow, but had struggled to find the funds to invest in new and more expensive machinery.
Developing-world countries are struggling to meet the demand for electricity and have increasingly sought temporary generators while large energy plants are under contruction.
APR has also signed contracts in Japan to supply generators to fill the gap in supply left by the collapse of the Fukushima nuclear power plant.
Founder and chief executive John Campion and co-founder Laurence Anderson will see their holding cut from 25% to 10% while Quantum and Albright will own 30% of the shares.
Campion founded Show Power, a power rental business for high-profile events, in 1987 and sold that business to General Electric in 2000. He later bought out Alstom's power rental business in 2004 and renamed it APR Energy.
Based in Jacksonville, Florida, APR has existing or new power service contracts in Ecuador, Peru, Argentina, Botswana, Burkina Faso, Costa Rica and Haiti, among others.
Source: http://www.guardian.co.uk/business/2011/jun/12/hugh-osmond-buys-temporary-power-generator-apr-energy
Economic policy Mark Bright TV ratings Electronic music Burlesque Arsène Wenger
No comments:
Post a Comment