US PE firm Ember to buy Ashtead Technology in £505m deal

(Sharecast News) - Ashtead Technology has agreed to be taken over by US private equity firm Ember Infrastructure Management in a £505m deal.

Under the terms of the acquisition, announced on Wednesday, Ashtead shareholders will receive 615p per share in cash. This is a premium of around 80.9% to the closing share price on 22 September, which was the last business day prior to the offer period.

New York-based Ember said Ashtead Technology's next phase of growth and development will be best served as a private company. Under private ownership, the PE firm said it will provide greater financial resources and access to long-term capital and enable longer-term business and strategic planning, "allowing management to invest with greater flexibility and pursue opportunities that may have taken longer to realise under the constraints of the public markets".

Ashtead Technology chairman Bill Shannon said: "The board believes that the acquisition recognises the strength of the Ashtead Technology Group and provides shareholders with a compelling opportunity to realise significant value today when compared with the risk-adjusted return that would be expected to be delivered through the execution of Ashtead Technology's standalone strategy.

"Accordingly, the Ashtead Technology board intends to recommend that shareholders vote in favour of the acquisition."

Ashtead Technology is a subsea equipment rental, advanced technologies and solutions provider for the global offshore energy sector.

At 0808 BST, the shares were up 14.5% at 607p.

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