Aggreko finds buyer for Russian business

Aggreko is to sell its Eurasian power rental businesses to an unnamed third party for US$29 million, comprising $21 million for the Russian operation and $8 million for the Kazakhstan business.

Albion JVCo, Aggreko’s owner, said it would take an impairment charge of $82 million on the sale, if completed.

The deal, announced in its full year results, is subject to regulatory clearances and follows a three year period during which Aggreko had been seeking to sell the businesses following the Russian invasion of Ukraine.

The buyer will be getting a Russian business that reported revenues of $106 million in the year to 28 December 2024, with pre-tax profits of $52 million. The Kazakhstan operation reported sales of $8 million with a $5 million pre-tax profit.

Before the third-party buyer was found Aggreko has been planning to sell the operations to a new company created for the purpose by its private equity owners, TDR Capital and I Squared Capital Advisors.

Aggreko’s owner said the sale was now subject to Russian presidential approval and it hopes the deal will be completed by the end of this year.

Annual results for 2024

Aggreko reported annual sales of $2.85 billion for the year to 28 December, a 14% increase over 2023, with pre-tax profits almost trebling from $115 million to $329 million. EBITDA profit was 16% higher at $1.1 billion.

In North America, revenue growth was 19% year-on-year, with increased activity across petrochemical and refining, data centres and construction. Europe was up 14%, driven by activity in the utility and data centre sectors, which partially offset decreases in oil and gas and petrochemical and refining.

Sales in Latin America rose by 30%, supported by growth in the oil and gas, mining and utility sectors. Its Asia Pacific business grew 21% due to the utility and mining sectors in Australia, data centre demand in Japan, Malayasia, and Thailand and oil a gas work in Singapore.