Ashtead Technology buys ACE Winches for £53.5m, lifts FY outlook
AIM-listed Ashtead Technology lifted its full-year expectations on Thursday as it announced the acquisition of ACE Winches from its founders Alfie and Valerie Cheyne, for £53.5m in cash.
Ashtead, a subsea equipment rental and solutions provider for the global offshore energy sector, said the deal is expected to be "materially" earnings enhancing in FY2024 and beyond. Return on invested capital will be "materially" ahead of the group's weighted average cost of capital in year one, it added.
Ashtead said UK-headquartered ACE Winches is a market-leader in the design, assembly and rental of lifting, pulling and deployment solutions. Its core offering supports the installation, inspection, maintenance & repair and decommissioning of offshore energy infrastructure. This is highly complementary to Ashtead Technology's existing equipment and services portfolio, it said.
Ashtead said it continues to be "very encouraged" by its performance through the second half and now expects FY23 to be "comfortably ahead" of its previous expectations before taking into account the additional growth from ACE Winches.
Chief executive Allan Pirie said: "We are delighted to announce this acquisition. ACE Winches is a business we have known for many years and has an exceptional reputation as a go-to provider of lifting, pulling and deployment solutions that is highly complementary to the existing capabilities within Ashtead Technology."
At 1000 GMT, the shares were up 21% at 586p.