Aggreko to expand through takeover

Temporary power group Aggreko is buying specialist industrial equipment business Crestchic In Burton upon Trent, Staffordshire.

Aggreko UK
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Aggreko UK 24/7 National Rental Centre CANNOCK

Crestchic shareholders will get £4.01 for each ordinary share.

The offer value Crestchic at £122 million

Aggreko, which has its UK head office in Cannock, is one of the global market leaders in delivering power and temperature control solutions.

It has more than 5,500 permanent employees and 159 sales and service centres across the globe to support its customers across 69 countries.

In August 2021 Aggreko was acquired by funds managed by TDR and I Squared.

Crestchic's business is well-aligned with Aggreko's overarching objective of supporting its customers through the energy sector's transition to more renewable sources of energy.

The addition of Crestchic to the Aggreko Group will help accelerate Aggreko's plan to target high-growth attractive end-markets such as renewable energy and data-centres.

The Crestchic directors intend to recommend unanimously that Crestchic shareholders vote in favour of the scheme at the court meeting in February.

Aggreko chairman Mike Smith said: "Crestchic is a world-class business operating in an attractive and specialised area of the power reliability market. In Aggreko, Crestchic will have a supportive and well-capitalised owner who shares Crestchic's desire to execute against its long-term vision of providing solutions aligned with the changing requirements of our customers. We look forward to Crestchic becoming part of the Aggreko Group to provide the best platform for success for Crestchic's customers, employees and wider stakeholders"

Peter Harris, executive chairman of Crestchic, said: "The Crestchic Board is pleased with the considerable progress made by the company following the implementation and delivery of its refocused strategy, and believes that Crestchic has the potential to generate significant value for shareholders in the long-term. However, the Board recognises that Crestchic, as a relatively small business, could accelerate its growth and shareholder value creation by combining with a significantly larger player in related global markets. The offer of 401p per Crestchic share in cash represents an attractive, immediate premium for shareholders, and I am confident that under Aggreko's responsible long-term stewardship the business will continue to thrive."

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