Acquisition of an air compressor rental fleet

 

TIDMNBI 
 
RNS Number : 9651U 
Northbridge Industrial Services PLC 
02 July 2009 
 

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 GBP1.2 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       | 020 7149 6000 | 
| Adviser)                                    |               | 
+---------------------------------------------+---------------+ 
| 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. 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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