LONDON, UK: The boards of Aggreko Limited and Crestchic Plc have reached agreement on the terms and conditions of a recommended cash offer to be made by Aggreko for the entire issued and to be issued ordinary share capital of Crestchic.

Under the terms of the offer, Crestchic shareholders will be entitled to receive: 401 pence in cash for each ordinary share. The offer values the entire issued and to be issued ordinary share capital of Crestchic at approximately £122 million representing an implied enterprise value of approximately £122 million.

Commenting on the Offer, Mike Smith, Chairman 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”.

Crestchic is a market leader in the power reliability sector, manufacturing and supplying mission critical industrial equipment around the world. Crestchic’s specialist electrical equipment is designed to meet the emerging needs of the new economy – data driven and dependent upon reliable electrical power infrastructure from increasingly renewable and cleaner energy generation sources.

Aggreko Limited is one of the global market leaders in delivering power and temperature control solutions.

Working at the forefront of a rapidly changing energy market, Aggreko provides customers with sector-specific, cost-effective and flexible solutions (including power, heating and air conditioning). Aggreko has more than 55 years of operational experience, over 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. TDR and I Squared have a proven track record and deep expertise in investing in power and energy transition infrastructure and equipment rental businesses which generate stable cash flows in attractive markets supported by growing demand.

Aggreko Limited has a business priority to add new capabilities through M&A. 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.

Aggreko has a complementary product offering and the addition of Crestchic Plc to the Aggreko Group will help accelerate Aggreko’s plan to target high-growth attractive end-markets such as renewable energy and data-centres.

Aggreko, and its shareholders, are excited by the opportunities Crestchic Plc is addressing and believe that the support of the Wider Aggreko Group will allow Crestchic to accelerate and de-risk delivery of its strategy. Aggreko believes that securing Crestchic’s future in a group with a well-aligned strategy is the best path forward for Crestchic’s employees, customers 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 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.”