REG - Ashtead Tech Hldgs - Acquisition of Hiretech

Ashtead Technology HoldingsAnnouncement

06/12/2022 07:00

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RNS Number : 6773I  Ashtead Technology Holdings plc  06 December 2022

6 December 2022

Ashtead Technology Holdings plc

("Ashtead Technology" or the "Group")

 

Acquisition of Hiretech

 

Ashtead Technology acquires offshore equipment rental specialist

 

Ashtead Technology (AIM: AT.), the international subsea equipment rental and
solutions specialist, is delighted to announce it has further expanded its
mechanical solutions service offering with the acquisition of the entire share
capital of Hiretech Limited ("Hiretech") for a total consideration of £20m on
a cash and debt free basis.

 

Established in 2011, Hiretech is a management owned, Aberdeenshire-based
equipment rental, service and maintenance company serving the international
offshore renewables, decommissioning, and conventional energy markets. Through
its multi-purpose fleet of marine and subsea equipment rental assets and
skilled personnel, the business boasts an excellent offshore renewables and
decommissioning-focused support services offering, which the Group will seek
to leverage to meet growing global customer demand.

 

Hiretech generated revenues of £6.5m, EBITDA of £4.1m and EBITA of £3.4m
for the twelve-month period to October 2022. The Group expects the transaction
to result in double-digit earnings accretion in FY2023 and generate returns
significantly in excess of the Group's cost of capital in the first full year
of ownership.

 

In order to fund the acquisition, the Group has increased its revolving credit
facility ("RCF") by £20m with its existing banking partners. As a result, the
Group now has access to a total RCF of £60m, increased from the £40m
facility put in place at IPO, which has also been extended for a further 12
months to November 2025 to facilitate future strategic investments and
initiatives. The Board expects pro forma net debt/EBITDA to be less than 1.2x
at year end.

 

Hiretech is Ashtead Technology's seventh acquisition in the last five years
evidencing a continuation of the organic and inorganic growth strategy set out
during its IPO in November 2021 and follows the Group's acquisition of
WeSubsea in September 2022, which has been integrated and is performing well.

 

Allan Pirie, Ashtead Technology's CEO, commented:

 

"We are delighted to announce the completion of this transaction and welcome
new colleagues to the Ashtead Technology team.

 

"Hiretech has an excellent reputation and strong track record of delivering
high-performance equipment and services to the offshore energy sector and has
been a key supplier to Ashtead Technology in recent years. This acquisition
provides strong synergies through vertical integration of the supply chain,
and meaningfully expands our business by adding complementary capabilities to
strengthen our mechanical solutions service line and deliver an enhanced
offering to our customers."

 

 

-ends-

 

 

For further information, please contact:

 

 Ashtead Technology                                         (Via Vigo Consulting)

 Allan Pirie, Chief Executive Officer

 Ingrid Stewart, Chief Financial Officer

 Ashtead Technology Media Contact:                          +44 (0)7436 03496  caroline.merson@ashtead-technology.com

 Caroline Merson, Marketing & Communications Director

 Vigo Consulting (financial PR)                             Tel: +44 (0)20 7390 0230

 Patrick d'Ancona                                            ashteadtechnology@vigoconsulting.com

 Finlay Thomson

 Kate Kilgallen

 Numis Securities Limited (Nomad and Broker)                Tel: +44 (0)20 7260 1000

 Julian Cater

 George Price

 Jonny Abbott

 Kevin Cruickshank (QE)

About Ashtead Technology:

 

Ashtead Technology is a leading provider of equipment rental solutions,
advanced underwater technologies and support services to the global offshore
energy sector.

 

Through three service lines - Survey & Robotics, Mechanical Solutions and
Asset Integrity - Ashtead Technology supports the installation, IMR
(inspection, maintenance & repair), and decommissioning of offshore energy
infrastructure from its service centres located in key offshore energy hubs
throughout the world.

 

 

This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014 as it forms part of domestic law of the United Kingdom
by virtue of the European Union (Withdrawal) Act 2018, as amended (together,
"MAR"). Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

 

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