Private Equity Take-Private

$3 Billion

eINFRASTRUCTURE

SYNOPSIS (AUG-2021)

Alexa Capital acted as financial advisor to I Squared Capital and TDR Capital on their £2.3 Billion ($3 Billion) take-private acquisition of Aggreko plc, de-listing the company from the London Stock Exchange. Aggreko is a leading global backup power and rentals business which manages a fleet of c.9 GW of diesel and gas powered distributed generation, operating across 23 countries including North America, South America, EMEA, Middle East and Eurasia, Asia & Australasia and Africa. The business lacked a coherent decarbonisation plan and arguably faced diesel stranded asset risks associated with operating its current conventional generation fleet. The I Squared and TDR Capital private equity consortium provide capital to support the business through an energy transition, including accelerated integration of hybrid renewables and energy storage, leveraging the company’s solid brand for resilient power solutions.

 

ALEXA CAPITAL’S ROLE

Alexa Capital developed the initial business plan and decarbonisation investment thesis to support private equity investment and worked closely with I Squared and TDR Capital to refine the investment case, including through deep industrial and commercial insights into the company, competitive market dynamics and a range of business plan scenarios. Our analysis followed perspectives developed following the sale of leading storage solutions group Younicos AG to Aggreko plc in 2018, and we worked actively with the private equity consortium through their preparation and analysis phase, with the UK Takeover Code public offer launched in February 2021 and final completion in August 2021.

 

MARKET IMPLICATIONS

The transaction demonstrates that harder-to-abate industry sectors can embrace accelerated decarbonisation in partnership with the right technology, capital and structuring solutions. Alexa Capital continues to focus on delivering strategic value-added capital solutions which leverage the deep industry insights developed through our depth of experience around the energy transition.