Aggreko Ltd on Friday announced that it has reached an agreement with Crestchic PLC to buy the Burton-on-Trent, England-based industrial equipment supplier for around £122 million.

Aggreko, a Glasgow, Scotland-based mobile and modular power generation supplier, said it offered 401 pence per Crestchic share - which it noted was a premium of around 13% to Crestchic’s closing price per share of 356p on December 8. Aggreko added that the offer was a premium of around 44% to the closing price per share of 279p from November 15.

Crestchic shares were up 12% at 397.11p per share on Friday morning in London, which makes the offer price of 401p each 1.0% higher.

Crestchic, said that the financial terms of the offer are ‘fair and reasonable’, with the directors of Crestchic recommending unanimously that shareholders in the company vote in favour of the scheme.

Crestchic added that directors holding shares - totalling 1.7 million shares and 6.1% of the voting shares on December 8 - will vote in favour of the takeover, while Aggreko had also received irrevocable undertakings from major shareholders to vote in favour of the takeover, with the combined shareholding of Harwood Capital LLP, Rockwood Strategic PLC and Oryx International Growth Fund Ltd totalling 25% of the voting shares, or 7.1 million shares.

The company said it had received a letter of intent from Artemis Investment Management LLP on behalf of Artemis UK Smaller Companies Fund confirming its intention to vote in favour of the scheme in respect of 2.1 million shares, or 7.4% of the voting shares.

Aggreko said in total it had received irrevocable undertakings in respect of 10.9 million shares, and 38.5% of the voting shares in issue on December 8.

Aggreko Chair Mike Smith said: ‘Crestchic is a world-class business operating in an attractive and specialised area of the power reliability market. In Aggreko, Crestchic will have a supportive and well-capitalised owner who shares Crestchic’s desire to execute against its long-term vision of providing solutions aligned with the changing requirements of our customers.’

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