APR Energy, the temporary power business owned by entrepreneur Hugh Osmond, expects a surge in new business after it signed an emerging markets development deal with Caterpillar.
The five-year contract will see APR work with Caterpillar and Florida agent Ring Power, with Caterpillar supplying mobile generator sets to APR Energy.
APR will gain access to a global distribution network of 188 Caterpillar dealers and City A.M. understands the firm expects to see a significant increase in sales in 2013, which may also lead to revenues topping analysts’ estimates next year.
Cat dealer Ring Power will provide application, engineering, sales and product support to APR Energy, which yesterday declined to reveal the value of the deal.
John Campion, chief executive of APR, said: “I have been doing business with Caterpillar for more than 20 years, and APR has used their power modules for its entire history. This is an exciting win-win for all of us.”
Horizon Acquisition, the vehicle run by Osmond, the co-founder of Pizza Express and Punch Taverns, announced in June a $855m (£547m) deal to buy APR Energy, whose shareholders include billionaire investor George Soros and former US Secretary of State Madeleine Albright.
APR saw sales rise 93 per cent in August and is currently the largest temporary power provider after Glasgow-based Aggreko. It expects both the total market and its share of sales to grow in the coming years.
Separately, Osmond is considering the creation of another shell company following the early success of Horizon. The vehicle initially raised more than £400m through issuing shares on the stock market before the APR deal had been identified.