TIDMAGK
RNS Number : 8414J
Aggreko PLC
03 July 2017
Aggreko invests in smart energy
Aggreko is excited to announce its GBP40m(1) agreement to
acquire Younicos, a global market leader in the development and
deployment of integrated energy systems, based on battery storage.
This acquisition strengthens our position as global energy markets
continue to evolve and is in line with our strategy to invest in
technology in order to reduce the cost of energy for our
customers.
Younicos delivers smart energy solutions integrating battery
storage, which are modular and scalable. Its knowledge of batteries
combined with proprietary control systems, enables the seamless
integration and management of all forms of power, including
thermal, renewable and battery energy resources; this is becoming
critical in an increasingly distributed energy market.
Global energy markets are changing: decarbonising and becoming
more decentralised and digital. As renewables penetration
increases, intermittency becomes a more difficult issue to manage
across grid systems. Integration and control of thermal, renewable
and battery systems will be increasingly required to ensure power
stability and reliability are maintained. Off grid and microgrid
energy solutions are ever more integrating renewable generation,
whilst industrial and commercial customers are also taking
advantage of opportunities for renewable integration and
demand-side management.
The capabilities brought by Younicos, leveraged through our
global footprint and experience in distributed power generation,
are compelling. The Younicos integration and control systems,
combined with batteries, can be deployed across our existing
business to lower the cost of energy, ensure reliability and reduce
carbon emissions for our customers around the world.
Younicos has invested heavily in R&D since it was founded in
2005. It is based in Germany and the USA and has over 200 MW of
installed storage systems, with a strong pipeline across both
developed and emerging markets. The CEO, Stephen Prince, will
report directly to Chris Weston, Aggreko Chief Executive. For the
calendar year 2016, Younicos had revenues(2) of GBP7m and made an
operating loss(2) of GBP15m; gross assets(2) at 31 December 2016
were GBP20m. We expect it to be loss making in the short term and
therefore earnings dilutive. The investment will be made in
cash.
Chris Weston, Aggreko Chief Executive, said: "As energy markets
continue to decarbonise, decentralise and become more digital, the
integration and control of multiple energy sources, including
thermal and renewable, will be essential to ensure the provision of
reliable power.
"As a pioneer of smart energy solutions based on battery
storage, Younicos is at the forefront of this trend. Together we
are a powerful combination; our scale, fleet and global presence,
coupled with a smart energy capability, will allow us to open up
new markets and provide our customers around the world with a
reliable, cheaper and cleaner source of energy."
Stephen Prince, Younicos Chief Executive, said: "We are
delighted to be joining with a market leading power provider in
Aggreko. Batteries are an economically attractive and reliable
asset which will play an increasing role as we transition from
today's energy market to the energy market of the future.
Integration and management of multiple distributed energy sources
will be necessary to optimise energy systems and deliver customers
with greater stability at a lower economic and environmental
cost."
(1) In addition, on completion there will be a net debt/cash
adjustment of circa GBP7m payable
(2) Unaudited accounts consolidated under IFRS
CONFERENCE CALL
There will be a conference call for investors and analysts
hosted by Chris Weston, Chief Executive, at 9am (BST) today. Dial
in details are as follows:
Dial in: +44 20 3059 8125
Conference call name: Aggreko
A recording of the call will be available on demand for 7
days.
Audio playback: + 44 121 260 4861
Reference: 6536959#
Editor's Notes
Around the world, people, businesses and countries are striving
for a better future - a future that needs power and the right
conditions to succeed.
Aggreko works round the clock, making sure everyone gets the
electricity, heating and cooling they need, whenever they need it -
all powered by our class-leading equipment, trademark passion,
unrivalled international experience and local knowledge. From urban
development to unique commercial projects and even humanitarian
emergencies, we bring our expertise and equipment to any location,
from the world's busiest cities to some of the most remote places
on earth.
That's what has made us the world's leading provider of modular,
mobile power and heating and cooling. We've been in business since
1962. We have more than 7,300 employees, operating from more than
200 locations in 100 countries. With revenues of approximately GBP
1.6bn (USD 2.6bn or Euros 2bn) in 2016, we are listed on the London
Stock Exchange (AGK.L) and have our headquarters in Scotland.
Our business helps transform the lives and livelihoods of
individuals, organisations and communities across the globe, in
both developed and developing countries and markets.
We operate across all sectors, including oil and gas,
petrochemical and refining, utilities, manufacturing, construction,
mining and events.
We design and manufacture equipment specifically for these
requirements in our factory in Dumbarton, Scotland and work with
leading innovators to ensure our equipment offers maximum fuel
flexibility, by using gas, diesel (including HFO) and renewable
fuel sources.
For more information, please visit our website at:
aggreko.com
This announcement contains inside information. The person
responsible for arranging for the release of this announcement on
behalf of Aggreko plc is Peter Kennerley, Group Legal Director
& Company Secretary.
Prior to the acquisition, Younicos was backed by shareholders
including family offices Calibrium AG (formerly Aeris Capital),
Mithril GmbH, and Groupo ECOS, plus selected corporate investors.
Younicos was advised by Alexa Capital on the transaction.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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