FT: Aggreko owners aim for $12B valuation via US listing or stake sale

FT: Aggreko owners aim for $12B valuation via US listing or stake sale

Aggreko Owners Explore $12 Billion Valuation via Stake Sale

The owners of Aggreko, a global leader in portable power generation, are considering selling a minority stake in the company to achieve a valuation of approximately $12 billion, according to multiple reports. Abu Dhabi Investment Authority (ADIA), private equity firms KKR & Co. and CVC Capital Partners Plc are among the potential buyers evaluating a 30% ownership stake in the Glasgow-based firm. The transaction, if finalized, would mark one of the largest private equity-backed stakes in the energy infrastructure sector.

Aggreko's current owners, TDR Capital and I Squared Capital, took the company private in 2021 for £2.6 billion ($3.5 billion). The proposed stake sale reflects renewed investor confidence in the firm's rebounding demand for temporary power solutions, driven by post-pandemic recovery in large-scale events and industrial projects. Aggreko has supplied generators for major events such as the Glastonbury Festival and the 2018 Winter Olympics.

The sale process is in early stages, with no final decisions made. TDR and I Squared could withdraw the offer if bids fall below their valuation expectations. The firm recently raised $2.265 billion in debt, with $503 million allocated to shareholder distributions.

Aggreko's potential $12 billion valuation represents a significant increase from its 2021 buyout price. The company operates a 9.6 gigawatt fleet and serves clients across energy, construction, and events industries. While the stake sale is the primary focus, the owners have not ruled out alternative strategies, including a public listing.

The transaction aligns with broader trends in private equity, where firms seek liquidity through partial exits amid high valuations in infrastructure and energy sectors. However, the deal's complexity—spanning regulatory approvals and competitive bidding—could delay execution until late 2025 or 2026.

Investors and analysts will closely monitor the outcome, as it could set a benchmark for valuations in the portable power market. For now, the Aggreko stake sale remains a speculative opportunity, with final terms dependent on market conditions and strategic alignment among buyers.