JACKSONVILLE, Fla., Oct. 23, 2013 /PRNewswire/ -- APR Energy (LSE: APR.L) is pleased to announce a strategic alliance with GE (NYSE: GE), extending the reach of both companies in the growing fast-track turnkey power solutions space.
Under terms of the deal, GE contributes its turbine rental business to APR Energy in return for cash and approximately 16.5 percent of APR Energy, making GE a key strategic investor in the company. Additionally, GE and APR Energy have entered into a supply and services agreement that will continue to provide support to current and future clients of APR Energy.
"This is a transformational transaction for APR Energy, allowing us to move forward rapidly towards delivering our stated medium-term business objectives," said John Campion, Chief Executive Officer of APR Energy. "By creating the world's leading fast-track mobile turbine power business and a long-term relationship with GE, we are well placed to deliver against an underserved and rapidly growing opportunity with the preeminent technology. The transaction diversifies our revenue base, gives us exposure to new geographies and sectors, and enhances our natural gas footprint. We are excited to be working closely with GE, whose partnership and equity commitment is an endorsement of our prospects and our ambition to be the leader in the large-scale, fast-track power industry."The transaction makes APR Energy the world's leading fast-track mobile gas turbine power provider, expanding reach into new regions and increasing its mobile turbine power capacity to 1.2 gigawatts – enough to power the equivalent of 1.2 million US homes. The deal includes approximately 520MW of capacity and rental contracts that GE currently has in place in Canada, Iraq, Australia, U.S. Virgin Islands, and Bangladesh. Demand for fast-track power is driven by factors that include increasing energy consumption, aging infrastructure, geopolitical and natural events, and climatic impacts. Mobile turbine usage within this space has grown rapidly as customers look towards larger-scale, semi-permanent solutions that integrate into their existing plants or operations and offer greater reliability, fuel flexibility and lower emissions.