TIDMAT.
RNS Number : 1966V
Ashtead Technology Holdings plc
30 November 2023
30 November 2023
Ashtead Technology Holdings plc
("Ashtead Technology" or the "Group")
Acquisition of ACE Winches
Ashtead Technology acquires ACE Winches
Ashtead Technology Holdings plc (AIM: AT.), a leading subsea
equipment rental and solutions provider for the global offshore
energy sector, is pleased to announce the acquisition of the entire
share capital of Rathmay Limited, the parent company of ACE
Winches, from its founders Alfie and Valerie Cheyne, for a total
cash consideration of GBP53.5m (on a cash and debt free basis) (the
"Transaction").
The Transaction will be funded through drawing on the Group's
revolving credit facility and is expected to be materially earnings
enhancing in FY2024 and beyond, with ROIC materially ahead of the
Group's weighted average cost of capital in year one.
About ACE Winches
Established in 1992, UK headquartered ACE Winches is a
market-leader in the design, assembly and rental of lifting,
pulling and deployment solutions. The company's core offering
supports the installation, inspection, maintenance & repair and
decommissioning of offshore energy infrastructure which is highly
complementary to Ashtead Technology's existing equipment and
services portfolio.
Through a combination of its comprehensive rental fleet and 31
years of proven engineering experience and expertise, ACE Winches
has built up an unrivalled reputation amongst its traditional oil
and gas customers and has more recently seen success in expanding
into the offshore renewables market. The company's in-house
designed and assembled equipment rental fleet is one of the most
comprehensive and diverse ranges of back deck machinery in the
industry and is designed to deliver reliable, fully integrated
solutions to address all complex lifting, pulling and deployment
challenges.
With nearly 80 per cent. of ACE Winches' revenue generated
outside of the UK, supported by operations in Norway and sales
offices in the UAE and USA, the acquisition offers a significant
opportunity for Ashtead Technology to further expand its global
offering across its existing international footprint. ACE Winches
is Ashtead Technology's eighth acquisition in the last six years
and follows the Group's acquisitions of WeSubsea and Hiretech, in
2022.
ACE Winches will form part of the Group's enlarged Mechanical
Solutions offering, a core area of focus for inorganic expansion.
Gary Wilson, current Chief Commercial Officer at ACE Winches will
run the day to day operations reporting to Ashtead Technology
management with founder, Alfie Cheyne, remaining with the business
as an advisor for 12 months to provide strategic and commercial
input through a handover and integration period.
As at 31 March 2023, ACE Winches reported gross assets of
GBP55.7m and for the 12 months to December 2023 ACE Winches is
expected to generate revenues of c. GBP43.4m, adjusted EBITDA of
GBP13.7m and adjusted EBITA of GBP10.0m. Organic growth rates for
the enlarged Group are expected to be in line with previous medium
term guidance. Pro forma leverage for the enlarged Group as at 31
December 2023 is expected to be less than 1.4x, with the Group
de-leveraging to less than 1x by December 2024.
Current Trading
The Board continues to be very encouraged by the Group's
performance through H2 2023 and now expects FY23 to be comfortably
ahead of its previous expectations before taking into account the
additional growth from ACE Winches.
Allan Pirie, Ashtead Technology's CEO, commented:
"We are delighted to announce this acquisition. ACE Winches is a
business we have known for many years and has an exceptional
reputation as a go-to provider of lifting, pulling and deployment
solutions that is highly complementary to the existing capabilities
within Ashtead Technology.
"While the business predominantly serves the oil and gas
industry, we see a significant opportunity to redeploy the asset
base in offshore renewable markets as well as further
internationalising our business. The transaction serves to
reinforce our strategy of expanding our fungible fleet and range of
offshore services solutions to meaningfully enhance our customer
offering, and in turn grow further market share. We look forward to
welcoming new colleagues to the Ashtead Technology team and
capitalising on the wealth of in-house expertise they will bring to
the Group."
-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
Numis Securities Limited (Nomad Tel: +44 (0)20 7260 1000
and Broker)
Julian Cater
George Price
Kevin Cruickshank (QE)
Notes to editors:
Ashtead Technology is a leading subsea equipment rental and
solutions provider for the global offshore energy sector. Ashtead
Technology's specialist equipment, advanced-technologies and
support services enable its customers to understand the subsea
environment and manage offshore energy production infrastructure
with over 85% of its equipment fungible across both markets.
The Company's service offering is applicable across the
lifecycle of offshore wind farms and offshore oil and gas
infrastructure.
In the fast-growing offshore wind sector, Ashtead Technology's
specialist equipment and services are essential through the project
development, construction and installation phase. Once wind farms
are operational, Ashtead Technology supports customers with
inspection, maintenance and repair ("IMR") equipment and services.
In the more mature oil and gas sector, Ashtead Technology's focus
is predominantly on IMR and decommissioning.
Headquartered in the UK, the Company operates globally,
servicing customers from its eleven facilities located in key
offshore energy hubs.
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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END
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