Glasgow-based Power firm Aggreko accepts £2.3bn takeover deal

Temporary power equipment provider Aggreko has agreed a £2.3bn takeover by two private equity firms.

The Glasgow-based firm told investors its board was recommending the deal with I Squared Capital and TDR Capital after talks.

The private equity firms agreed the offer worth 880p per share, representing a 39% premium on Aggreko's share price on 4 February.

The takeover will need at least 75% approval from Aggreko shareholders.

The deal is expected to complete in the summer if it receives the go-ahead.

Aggreko, which supplies temporary power generators around the world, has seen trading severely affected by the coronavirus pandemic.

On Monday, it reported that pre-tax profits were cut by almost half in 2020 to £103m.

'Attractive price'

Chairman Ken Hanna said the board believed the takeover offer represented "an attractive price in cash that fairly recognises Aggreko's future prospects".

"Aggreko is a great company and the actions that we have taken in the last few years, both strategically and financially, have positioned the company well to navigate the market challenges and look to the future as a leader in the energy transition," he added.

In January, the company announced plans to convert its production facility in West Dunbartonshire into a "future energy hub" as part of a £4.5m investment.

The firm's plans for its Dumbarton site include replacing all diesel with low-emission hydrotreated vegetable oil.

Smart battery storage and LED lighting will also be used to make energy use at the facility more efficient.

Aggreko has committed to reaching net-zero carbon emissions from its own operations by 2030.