(Bloomberg) -- TDR Capital and I Squared Capital are considering options to exit their ownership in Aggreko Plc, one of the world’s biggest suppliers of portable power generators, according to people familiar with the matter.
The investment firms are talking to potential advisers on alternatives including selling a minority stake, a full sale or an initial public offering of the Glasgow-based business, which could have an equity value of about $10 billion or more, the people said. The asset could attract both financial investors and other companies in the same industry, the people said.
Any transaction will likely be launched next year, the people said, asking not to be identified as the matter is private. Deliberations are in the early stages and it’s possible the owners could decide to retain the asset, the people said.
Representatives of TDR Capital and I Squared declined to comment.
Aggreko offers rentals of power, heating and cooling equipment to clients in the energy, refining, construction and events industries, among others. It has provided generators to the Glastonbury Festival, Britain’s marquee music event, as well as the 2018 Winter Olympic Games in South Korea. Demand for such services has rebounded since the pandemic as big events that rely on temporary power restarted.
TDR and I Squared teamed up to take Aggreko private in a £2.6 billion ($3.4 billion) deal in 2021. The company employs more than 6,000 workers in more than 60 global locations, with a fleet size of 9.6 gigawatts, according to its website.
Dealmaking activity led by private equity firms has gained momentum in recent months as financing costs are stabilizing with buyers and sellers more aligned on valuations. The buyout firm owners of German generic-drug maker Stada Arzneimittel AG have been working on a possible sale and GTCR is in advanced talks on a potential acquisition that could value the business at roughly €10 billion ($11 billion), Bloomberg News reported this month.
--With assistance from Sabah Meddings.
©2024 Bloomberg L.P.
