2 Jul 2009 07:00
FOR IMMEDIATE RELEASE 2 JULY 2009
NORTHBRIDGE INDUSTRIAL SERVICES PLC
("Northbridge" or "the Company")
Acquisition of an air compressor rental fleet
Northbridge the industrial service and rental company, is pleased to announce the acquisition of a specialist air compressor fleet based in the UK together with an alliance with the manufacturer Sullair Corporation.
The initial fleet of twenty eight units purchased comprises dual pressure compressors (including four specialist dryer units) which can operate at either 24 bar or 34.5 bar and with air flows of up to 45.3 cubic metres per minute. The specialist applications for these compressors include pipeline dewatering and pressure testing in the oil & gas industry, in addition the compressors can provide instrument quality air with built in after-coolers and compressed air filtration.
The addition of this equipment is complementary to Northbridge's existing businesses and is in line with our stated strategy of acquiring a portfolio of specialist rental assets. These compressors will be used to service the demands of the company's growing customer base of large industrial users, utility companies and the oil & gas industries in the UK.
The total cost of the hire fleet is £1.2 million, of which 90% has been funded by a hire purchase agreement with Lloyds TSB Commercial Finance. This agreement is for five years with an interest rate based on the Lloyds Banking Group base rate.
The alliance with Sullair is the beginning of a relationship that is anticipated to grow as Northbridge expands into other areas and regions and in the longer term will enable Northbridge to offer service and rental of these products throughout Europe and the Middle East. Sullair Corporation based in Michigan City, Indiana, USA, is a world leader in rotary screw compression technology and is a division of Hamilton Sundstrand, a United Technologies Company.
Commenting on the acquisition Eric Hook CEO of Northbridge said:-
"The opportunity to acquire this fleet of large Sullair compressors was very welcome as the equipment is complementary to our existing fleet of specialist industrial equipment, helps us expand our current portfolio of rental assets, will bring many new customers and also expands the group into new areas of the market. A number of the units are already on hire and we look forward to increasing the utilisation of the fleet over the coming months"
For further information
| Northbridge Industrial Services plc | |
| Eric Hook, Chief Executive Officer | 0770 283 1110 |
| Ash Mehta, Finance Director | 07930 547 441 |
| Charles Stanley Securities (Nominated Adviser) | 020 7149 6000 |
| Mark Taylor / Freddy Crossley | |
| Buchanan Communications | 020 7466 5000 |
| Charles Ryland / James Strong |
About Northbridge:
Northbridge Industrial Services was incorporated for the purpose of acquiring companies that hire and sell specialist industrial equipment supplying a non-cyclical customer base including utility companies, the public sector and the oil and gas industries. In particular it will seek to acquire specialist businesses that have the potential for expansion into complete outsourcing providers Region.