LONDON, UK: Ashtead Technology (AIM: AT.) has additional expanded its mechanical options service providing with the acquisition of the entire share capital of Hiretech Limited for a complete consideration of £20 million on a money and debt free basis.
Established in 2011, Hiretech Limited is a administration owned, Aberdeenshire-based equipment rental, service and upkeep firm serving the worldwide offshore renewables, decommissioning, and conventional energy markets.
Through its multi-purpose fleet of marine and subsea equipment rental assets and expert personnel, the enterprise boasts an excellent offshore renewables and decommissioning-focused support services offering, which the Group will search to leverage to meet rising global buyer demand.
Hiretech generated revenues of £6.5m, EBITDA of £4.1m and EBITA of £3.4m for the twelve-month interval to October 2022. The Group expects the transaction to result in double-digit earnings accretion in FY2023 and generate returns considerably in extra of the Group’s cost of capital within the primary full year of ownership.
In order to fund the acquisition, the Group has elevated its revolving credit score facility (“RCF”) by £20m with its existing banking partners.
As a result, the Group now has entry to a complete RCF of £60m, elevated from the £40m facility put in place at IPO, which has additionally been prolonged for a additional 12 months to November 2025 to facilitate future strategic investments and initiatives. The Board expects professional forma net debt/EBITDA to be lower than 1.2x at year end.
Hiretech is Ashtead Technology’s seventh acquisition within the final 5 years evidencing a continuation of the natural and inorganic growth technique set out throughout its IPO in November 2021 and follows the Group’s acquisition of WeSubsea in September 2022, which has been built-in 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 provider to Ashtead Technology in recent years. This acquisition provides strong synergies through vertical integration of the provide chain, and meaningfully expands our enterprise by including complementary capabilities to strengthen our mechanical options service line and ship an enhanced providing to our customers.”