Aggreko targets oil sands projects with Canadian acquisition

Aggreko has agreed to buy Canadian power rental company Power Plus Rentals and Sales for up to C$38.7 million (£19.5 million). Power Plus is based in Edmonton and provides power for companies operating in the Athabasca Oil Sands areas in Alberta and Saskatchewan.

Power Plus reported revenues of C$10.6 million (£5.4 million) and profit before interest and tax of C$5.1 million (£2.6 million) for the year to 31 July 2008 and has been growing at a compound rate of over 35% for the past three years. Aggreko will initially pay C$31 million and up to C$7.7 million (£3.9 million) more over the next three years depending on financial performance.

Rupert Soames, chief executive of Aggreko, said: "We are delighted to be acquiring this fast-growing and highly specialised business in what is a very promising market for Aggreko. We look forward to welcoming our new colleagues from Power Plus into Aggreko, and growing our ability to serve customers in the Oil Sands area."

Aggreko said the acquisition gave it a leading position in an increasingly important part of the oil and gas market and strengthened its position in Canada. Over C$10 billion a year is being invested by oil companies in developing the Athabasca oil sands, which is the world's second-largest proven oil reserve. Aggreko opened an office in Edmonton in 2007 to target oil sands work.