Aggreko buys energy storage company Younicos
Power provider Aggreko is jumping big into the energy storage sector with its acquisition of Younicos announced this weekend
Power provider Aggreko is jumping big into the energy storage sector with its acquisition of Younicos announced this weekend.
Aggreko is buying Younicos for $45 million in cash, according to reports. The deal will combine Aggreko’s global scale in temporary power services with Younicos' energy storage solutions and research capabilities, executives said.
“As energy markets continue to decarbonize, decentralize 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,” Chris Weston, CEO of Aggreko, said in a statement. “As a pioneer of smart energy solutions based on battery storage, Younicos is at the forefront of this trend.”
German and U.S.-based Younicos has more than 200 MW of installed storage systems. The company had revenues of $7.9 million and an operating loss of $17 million in 2016.
Nonetheless, the companies stated that the combination will open new markets and deliver cheaper, cleaner energy to customers.
“We are delighted to be joining with a market-leading power provider in Aggreko,” said Younicos CEO Stephen Prince, who will now report to Weston. “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 resources will be necessary to optimize energy systems and deliver customers with greater stability at a lower economic and environment cost.”
The deal is $45.4 million in cash and, when completed, will include a $7.9 million net debt/cash adjustment payment. Aggreko expects the acquisition to be a net loss in the short term and dilutive to earnings.
Aggreko, founded in 1962, provides mobile power, heating and cooling services globally. The company has more than 7,300 employees in 100 countries and annual revenue of $2.6 billion.