By Scott Wright

AGGREKO, the Scottish-based temporary power specialist, has made its first major acquisition since returning to private hands.

The company, which was acquired by private equity outfits TDR and I Squared for £2.3 billion last year, has agreed a £123 million deal to buy Crestchic, a manufacturer of load banks for testing electricity generators. Shares in Crestchic rose sharply, closing up by nearly 11 per cent. Aggreko’s 401p per share offer represents a premium of around 44% to the Crestchic closing price of 279p on November 15 – the last business day before the offer was received.

The deal is the first fruits of a strategy being pursued by Aggreko, which continues to have a major facility at Lomondgate in Dumbarton, to add new capabilities through mergers and acquisitions under its new owners.

Aggreko said it has a complementary product offering to Creshtchic’s and declared the acquisition would accelerate its plans in high-growth end-markets such as renewable energy and data centres.

The Crestchic board noted that “as a relatively small business, could accelerate its growth and shareholder value creation by combining with a significantly larger player in related global markets”.

The directors of Crestchic intend to unanimously recommend the offer to the company’s shareholders.

Aggreko chairman Mike Smith said: “Crestchic is a world-class business operating in an attractive and specialised area of the power reliability market. In Aggreko, Crestchic will have a supportive and well-capitalised owner who shares Crestchic’s desire to execute against its long-term vision of providing solutions aligned with the changing requirements of our customers. We look forward to Crestchic becoming part of the Aggreko Group to provide the best platform for success for Crestchic’s customers, employees and wider stakeholders.”