Power surge

Aggreko in £122m cash deal for AIM firm Crestchic

Aggreko back on acquisition trail

Aggreko, the Scotland-based temporary power supplier, is acquiring a specialist equipment provider in a £122 million recommended cash offer.

The 401p-a-share offer for Crestchic, which is quoted on the Alternative Investment Market, represents a 44% premium to the closing price on 15 November when the Crestchic board was notified, and 13% to the price on 8 December.

The deal will bring an end to Crestchic’s public status after 16 years and also comes after Glasgow-headquartered Aggreko was itself delisted from the London stock exchange following a £2.3bn takeover by I Squared Capital and TDR Capital in August last year. Centerview Partners advising Aggreko.

Aggreko – which was carved out of the former Christian Salvesen haulage business – has benefited from a year of disruption in the energy market and said the deal will help accelerate its plan to target high-growth attractive end-markets such as renewable energy and data-centres. 

Mike Smith, chair of Aggreko 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 chair at 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 401 pence 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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