ADIA, CVC Said Among Firms Eyeing Stake in $12 Billion Aggreko - Bloomberg
The Abu Dhabi Investment Authority, buyout firms KKR & Co. and CVC Capital Partners Plc are among parties considering buying a minority stake in Aggreko, one of the world’s biggest suppliers of portable power generators, according to people familiar with the matter.
Aggreko’s owners TDR Capital and I Squared Capital are planning to sell as much as 30% in the Glasgow-based company and a deal could value the entire business at $12 billion or more, the people said. The stake sale could also draw interest from other financial investors, the people said, asking not to be identified as the information is private.
Deliberations are in the early stages and no final decisions have been made, the people said. Aggreko’s owners could also decide against the stake sale if offers come below their expectations, they added. Representatives for TDR, I Squared, ADIA, CVC and KKR declined to comment.
Aggreko offers rentals of power, heating and cooling equipment to clients in the energy, refining, construction and events industries, among others. It has provided generators to the Glastonbury Festival, Britain’s marquee music event, as well as the 2018 Winter Olympic Games in South Korea. Demand for such services has rebounded since the pandemic as big events that rely on temporary power restarted.
TDR and I Squared teamed up to take Aggreko private in a £2.6 billion ($3.5 billion) deal in 2021. The company employs more than 6,000 workers in more than 60 global locations, with a fleet size of 9.6 gigawatts, according to its website.
The Aggreko owners have been considering options for their ownership in the firm and a transaction is likely to be launched this year, Bloomberg News reported in September 2024. Earlier this year, Aggreko offered $2.265 billion of debt, with $503 million earmarked for dividend distributions to owners TDR and I Squared.
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