Temporary power rental specialist APR Energy is to be acquired by a private equity consortium in a deal which values the company at £165 million (€229 million).

The Apple Bidco consortium, controlled by Fairfax Financial Holdings, ACON Equity Management, and Albright Capital Management, paid £1.75 (€2.43) per share for the company.

On top of that, the consortium said it would supply additional funding of US$200 million (€181 million) to recapitalise the company, around US$150 million (€136 million) of which would be used to repay a loan that APR Energy took out.

Haresh Jaisinghani, APR Energy interim senior independent director said the acquisition brought to an end a period of uncertainty for the company.

“Although APR Energy has built a good and differentiated business in an exciting and growing sector, it has become clear that a more sustainable and long term financial platform was required for the company to fulfil its ambitions.”

And Prem Watsa, Fairfax chairman and CEO, added, "As long term shareholders in the company, we have seen first-hand the quality of the management team and the size of the market opportunity.

“Given the volatility of the market, combined with the capital intensive nature of the business, we believe that APR Energy would benefit from a period as a privately held company as it seeks financial stability. We are looking forward to providing the long term stability that APR Energy needs."

The deal came after APR Energy saw its business in the Middle East hit hard by the ongoing conflict and political uncertainty in the region, resulting in the early termination of its contract in Libya, and the controlled shutdown of its business in Yemen.

APR Energy reported a half-year loss after tax of US$64.5 million (€56.5 million) after year-on-year revenues fell by more than 50% in the six months to 30 June.

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