Boston, MA 10/24/2013 (wallstreetpr) – A symbiotic relationship has now emerged between the U.S. giant General Electric Company (NYSE:GE) and APR Energy in which the former has sold its power rental business to the latter at a cost of $314 million. In the deal, this acquisition amount will be paid in both cash and stock. As such, GE will receive $64 million in cash and $250 million in stock.
It thus goes that GE will have about 16.5% stake in APR whose stock trades in London and closed at $1,131.71 on Wednesday, October 23. In the Wednesday’s trading, APR shares went up 18.50%.
The acquisition of GE’s power rental is the biggest deal that APR has negotiated in its history. APR provides global turnkey power generation. And it sees the move to takeover this $314 valued power rental business as a major boost to its business and operations, more so against the rival Aggreko. The APR has termed the deal a major “accelerator” for their business.
In an interesting twist, it is emerging that the power rental unit that GE is selling to APR was originally part of the power rental business which APR co-founder Laurence Anderson and the company’s CEO John Campion sold to GE nearly 13 years ago. This temporary power unit generates energy with the use of small mobile turbines.
Having been in a longstanding business relationship, the two companies have termed the acquisition of the temporary power as a win-win situation and APR hopes it’s going to gain a wider new market with its acquisition based on GE’s broad networks. And for this, APR is going to do a lot for its growth.
Apparently, some of the envisioned growth by APR is the hiring of more smart staff to manage the acquired temporary power business unit. Since 2011, APR has doubled its staff at its London offices.
While APR’s shares reacted positively to the acquisition deal, GE plunged by 1.23% to finish down $25.70 on Wednesday, October 23.
