Aggreko agrees to private equity sale

Aggreko’s directors have agreed to the company’s acquisition by private equity firms I Squared Capital and TDR Capital for £8.80 per share, valuing the business at £2.32 billion.

The price, which is the same as when the bid was announced on 5 February, represents a 39% increase on the share price on 4 February.

Aggreko generators operating in Latin America.

A statement issued today by the private equity firms said that Aggreko’s directors would unanimously recommend the offer to its shareholders at the Court Meeting and General Meeting. Aggreko’s AGM will be on 22 April.

Power and temperature control rental specialist Aggreko is one of the five largest rental companies in the world, with revenues of £1.36 billion in 2020. It is the largest rental specialist.

The acquisition is expected to close in the summer of 2021.

Ken Hanna, the Chairman of Aggreko, said; “The Aggreko Board believes that the offer from I Squared Capital and TDR Capital represents an attractive price in cash that fairly recognises Aggreko’s future prospects.”

He added; “The leadership team set out a clear vision in November 2020 for how Aggreko can both grow profitably through the energy transition and achieve market leading carbon reduction targets. This strategy was well received by our partners, our customers and investors, and I Squared Capital and TDR Capital are fully supportive.”

Adil Rahmathulla of I Squared Capital, said Aggreko’s strategy to become a net-zero emission business required significant investment in clean technology; “We are well positioned to accelerate Aggreko’s development at this critical juncture and secure a successful future for the company”.

Gary Lindsay of TDR Capital LLP, said; “I Squared Capital and TDR Capital together have a proven track record and deep expertise in investing in the power infrastructure and equipment rental sectors. Aggreko is a business that fits this investment focus well.

“It has the potential to enable the energy transition through clean technology investment, as the world focuses increasingly on energy efficiency and sustainability. We fully support Aggreko’s vision for long term growth and believe our partnership will enable it to accelerate its strategy.”

UK-based TDR Capital knows the equipment rental sector very well through its ownership of portable accommodation company Modulaire (previously Algeco).

I Squared Capital, based in Miami, Florida, invests in global infrastructure markets, including hydoelectric projects, water treatment, roads and energy.