Key Takeaways
- • Ember Infrastructure Management has agreed to acquire Ashtead Technology in a recommended cash offer valuing the London-listed subsea equipment rental company at approximately £505 million (about $676 million).
- • Ashtead shareholders will receive 615 pence in cash per share, with the board recommending approval.
- • The agreement was reached on the deadline day under the U.K. takeover code's "put up or shut up" regime, after Ember's unsolicited, non-binding approach in September.
- • Ashtead's shares rose almost 15% in early trading after the announcement, according to Energy Voice.
- • The deal follows a revenue warning of roughly 5% below market expectations, with first-half revenue up 1% to £100.2 million and EBITDA margin narrowing to 25% from 27.3%.
Summary
New York-based Ember Infrastructure Management has agreed to acquire Ashtead Technology, the Aberdeen-based subsea equipment rental and services company, in a recommended cash take-private valued at approximately £505 million, or about $676 million, according to HedgeCo.Net. Ashtead shareholders will receive 615 pence in cash per share, and the company's board will recommend that shareholders vote in favor of the transaction.
The agreement was reached on the deadline day under the U.K. takeover code's "put up or shut up" regime. Ember first approached Ashtead in September with an unsolicited, non-binding proposal. Ashtead's shares climbed almost 15% in early trading following the announcement, according to Energy Voice.
The bid comes after a softer period for Ashtead. The company recently warned shareholders that revenue was likely to come in around 5% below market expectations, citing adverse conditions tied to the war in the Middle East. First-half revenue rose 1% year on year to £100.2 million, while the EBITDA margin narrowed to 25% from 27.3%. Chairman Bill Shannon said the board's priority had been to ensure the group's quality and prospects were "fairly recognised" in the offer terms, and that the deal gives shareholders a chance to realize value compared with the risk-adjusted return of the standalone strategy.
Ember founder and managing partner Elena Savostianova said the firm would support Ashtead in pursuing its current strategy "with greater ambition and with the support of additional long-term private capital," including continued investment in its rental fleet, technology and people. Ashtead employs about 650 people worldwide. The transaction remains subject to shareholder and court approvals and other conditions.
The deal fits a pattern of sponsors acquiring small and mid-cap U.K. companies whose public valuations have lagged after earnings disappointments. For infrastructure-oriented investors, Ashtead's asset-heavy rental fleet serving offshore energy work offers contracted, equipment-backed cash flows that can be financed and held privately, away from the quarterly scrutiny that followed the revenue warning.
The agreement was reached on the deadline day under the U.K. takeover code's "put up or shut up" regime. Ember first approached Ashtead in September with an unsolicited, non-binding proposal. Ashtead's shares climbed almost 15% in early trading following the announcement, according to Energy Voice.
The bid comes after a softer period for Ashtead. The company recently warned shareholders that revenue was likely to come in around 5% below market expectations, citing adverse conditions tied to the war in the Middle East. First-half revenue rose 1% year on year to £100.2 million, while the EBITDA margin narrowed to 25% from 27.3%. Chairman Bill Shannon said the board's priority had been to ensure the group's quality and prospects were "fairly recognised" in the offer terms, and that the deal gives shareholders a chance to realize value compared with the risk-adjusted return of the standalone strategy.
Ember founder and managing partner Elena Savostianova said the firm would support Ashtead in pursuing its current strategy "with greater ambition and with the support of additional long-term private capital," including continued investment in its rental fleet, technology and people. Ashtead employs about 650 people worldwide. The transaction remains subject to shareholder and court approvals and other conditions.
The deal fits a pattern of sponsors acquiring small and mid-cap U.K. companies whose public valuations have lagged after earnings disappointments. For infrastructure-oriented investors, Ashtead's asset-heavy rental fleet serving offshore energy work offers contracted, equipment-backed cash flows that can be financed and held privately, away from the quarterly scrutiny that followed the revenue warning.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.