Aggreko buys $440m Resolute; second deal this month

Glasgow-based mobile power giant Aggreko plc — bought in 2021 by private equity firms TDR Capital LLP and I Squared Capital — said on Wednesday it agreed to buy Florida-based heating, ventilation and cooling firm Resolute Industrial from private equity firm AE Industrial Partners for an enterprise valuation of $440 million.

The deal follows news from Aggreko on December 9 that it reached an agreement to buy Burton on Trent-based Crestchic plc in a deal that values the specialist equipment provider at £122 million

“Aggreko announces that on 24 December 2022 it entered into a securities purchase agreement to acquire all of the outstanding equity interests of Resolute Parent LLC, the owner of Resolute Industrial, a provider of specialised heating, ventilation and cooling (HVAC) solutions in North America for a cash-free, debt-free enterprise valuation of $440m,” said Aggreko.

“The transaction, which will be fully funded by new secured debt facilities and remains subject to the satisfaction of certain regulatory and customary conditions, is expected to complete during Q1 2023.”

Resolute Industrial is headquartered in Tampa, Florida, and has around 300 employees and operates from 38 locations across North America. In the 12 months to November 30, 2022, the business reported revenue of $146 million and EBITDA of $53 million.

Aggreko chairman Mike Smith said: “We are delighted to announce the acquisition of Resolute Industrial, a high-quality business specialising in HVAC solutions in North America, a key target market, and are excited by the additional growth opportunities that the acquisition brings to the group.”  

Aggreko added: “This announcement follows the announced recommended cash offer by Aggreko for Crestchic plc on 8 December for a total enterprise value of approximately £122m, which is to be funded by new equity provided by Aggreko’s two major shareholders TDR Capital and I Squared Capital.

“The completion of the acquisition of Crestchic plc remains subject to certain regulatory and other conditions and on Crestchic shareholder approval and is expected to complete during Q1 2023.

“The UK Takeover Code limits further information being shared at this stage.”

Resolute CEO Mike McGraw said: “We are grateful for the outstanding partnership we have enjoyed with AEI and its support in growing our service offerings and geographic footprint.

“We look forward to moving ahead with our new owners as we continue to address the evolving needs of our customers.”