HedgeCo.Net — 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 offer that values the London-listed business at approximately £505 million, or about $676 million. Ashtead shareholders will receive 615 pence in cash per share, and the company’s board will recommend that they vote in favor of the deal.
The agreement came on the deadline day under the U.K. takeover code’s “put up or shut up” regime, after Ember first approached Ashtead in September with an unsolicited, non-binding proposal. Ashtead’s shares climbed almost 15% in early trading after the announcement, according to Energy Voice.
The bid arrives after a softer stretch for the company. Ashtead 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% from a year earlier to £100.2 million, while its 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 terms of the offer, 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 deal remains subject to shareholder and court approvals and other conditions.
The transaction fits a steady pattern of sponsors picking off small and mid-cap U.K. companies whose public valuations have lagged after earnings disappointments. For infrastructure-oriented investors, an asset-heavy rental fleet serving offshore energy work offers contracted, equipment-backed cash flows that can be financed and held privately without the quarterly scrutiny that followed Ashtead’s revenue warning.