REG - Ashtead Tech Hldgs - Completion of Acquisition

Ashtead Technology HoldingsAnnouncement

26/11/2024 07:00

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RNS Number : 5932N  Ashtead Technology Holdings plc  26 November 2024

26 November 2024

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.

 

 

Ashtead Technology Holdings plc

 

("Ashtead Technology" or the "Group")

 

Completion of Acquisition

 

Further to the announcement of 24 October 2024, Ashtead Technology Holdings
plc (AIM: AT.) is pleased to announce that it has completed the acquisition of
Seascan Limited and its subsidiaries (otherwise known as Seatronics), along
with its sister company, J2 Subsea Limited (together "Seatronics and J2") from
Acteon Group Operations (UK) Limited ("Acteon").

 

Acquisition highlights

·      Enhances the Group's capabilities in the rental of survey &
robotics equipment, with a platform to drive growth internationally.

·      Increases the breadth and depth of the Group's rental fleet and
provides a highly skilled employee base with significant domain knowledge.

·      Deepens customer relationships and strengthens the Group's value
proposition and service offering across both the offshore oil & gas and
renewables sectors.

·      Mid-to-high single digit earnings enhancing in the first full
year of ownership; return on invested capital well ahead of Group weighted
average cost of capital in year 1.

·      Pro-forma leverage of ~1.8x as at 30 June 2024 and expected to
reduce to below 1.5x by the end of 2025.

 

Allan Pirie, Chief Executive Officer of Ashtead Technology, commented:

 

"We are delighted to complete the acquisition of Seatronics and J2. The
transaction strengthens our international footprint within the subsea survey
and robotics market and expands our highly fungible survey and robotics rental
fleet by around 30%. We are pleased to welcome our new colleagues to Ashtead
Technology, increasing the wealth of our in-house expertise and creating a
world-leading subsea survey and robotics team."

 

For further information, please contact:

 

 Ashtead Technology                                   (Via Vigo Consulting)

 Allan Pirie, Chief Executive Officer

 Ingrid Stewart, Chief Financial Officer

 Colin Ross, Chief Strategy & Marketing Officer

 Vigo Consulting (Financial PR)                       Tel: +44 (0)20 7390 0230

 Patrick d'Ancona                                      ashteadtechnology@vigoconsulting.com

                                                    (mailto:ashteadtechnology@vigoconsulting.com)
 Finlay Thomson

 Verity Snow

 Numis Securities Limited (Nomad and Broker)          Tel: +44 (0)20 7260 1000

 Julian Cater

 George Price

 Kevin Cruickshank (QE)

The person responsible for arranging the release of this announcement on
behalf of Ashtead Technology is Ingrid Stewart, CFO / Director.

 

 

Important notices:

 

This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014 as it forms part of domestic law of the United Kingdom
by virtue of the European Union (Withdrawal) Act 2018, as amended. Upon the
publication of this announcement, this inside information is now considered to
be in the public domain.

 

This announcement contains certain forward-looking statements relating to the
business, strategy, financial performance and results of Ashtead Technology
and/or the Group and/or the industry in which they operate. Actual results,
levels of activity, performance, achievements and events are most likely to
vary materially from those implied by the forward-looking statements. The
forward-looking statements concern future circumstances and results and other
statements that are not historical facts, sometimes identified by the words
'believes',' expects', 'predicts', 'intends', 'projects', 'plans',
'estimates', 'aims', 'foresees', 'anticipates', 'targets', 'goals', 'due',
'could', 'may', 'should', 'potential', 'likely' and similar expressions,
although these words are not the exclusive means of doing so. These
forward-looking statements include, without limitation, statements regarding
the Group's future financial position, income growth, impairment charges,
business strategy, projected levels of growth in the relevant markets,
projected costs, estimates of capital expenditures, and plans and objectives
for future operations. Forward-looking statements contained in this
announcement regarding past trends or activities should not be taken as a
representation that such trends or activities will continue in the future.
Nothing in this announcement should be regarded as a profit forecast.

 

The forward-looking statements, including assumptions, opinions and views of
Ashtead Technology or cited from third party sources, contained in this
announcement are solely opinions and forecasts which are uncertain and subject
to risks. Although Ashtead Technology believes that the expectations reflected
in these forward-looking statements are reasonable, it can give no assurance
that these expectations will prove to be correct. Actual results may differ
materially from those expressed or implied by these forward-looking
statements. A number of factors could cause actual events to differ
significantly from those expressed or implied by such forward looking
statements.

 

Most of these factors are difficult to predict accurately and are generally
beyond the control of Ashtead Technology and the Group. Any forward-looking
statements made by, or on behalf of, Ashtead Technology and/or the Group speak
only as of the date they are made. Save as required by law, Ashtead Technology
will not publicly release the results of any revisions to any forward-looking
statements in this announcement that may occur due to any change in the
directors' expectations or to reflect events or circumstances after the date
of this announcement.

 

Notes to editors:

 

About Ashtead Technology:

 

Ashtead Technology is a leading subsea equipment rental and solutions provider
to the global offshore energy sector. Ashtead Technology's specialist
equipment, advanced-technologies and support services enable its customers to
understand the subsea environment and manage offshore energy production
infrastructure.

 

Ashtead Technology's offering is applicable across the lifecycle of offshore
wind farms and offshore oil and gas infrastructure with over 85% of its
equipment fungible across both markets.

 

Headquartered in the UK, Ashtead Technology operates globally, servicing
customers from its facilities located in key offshore energy hubs.

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