Ashtead Technology snaps up Aberdeenshire-based Hiretech in £20 million deal

Ashtead Technology, the subsea equipment rental specialist, has snapped up Aberdeenshire-based Hiretech in a £20 million cash deal.

Established in 2011, Hiretech is a management-owned equipment rental, service and maintenance company serving the international offshore renewables, decommissioning and conventional energy markets. Ashtead said the business boasted an “excellent offshore renewables and decommissioning-focused support services offering”, which the group will seek to leverage to meet growing global customer demand.

Hiretech generated revenues of £6.5m and earnings before interest, tax and amortisation of £3.4m for the 12-month period to October. Stock market-listed Ashtead expects the takeover to result in double-digit earnings accretion in its 2023 financial year and generate returns “significantly in excess of” the group’s cost of capital in the first full year of ownership. In order to fund the acquisition, the group has increased its revolving credit facility by £20m with its existing banking partners.

Hiretech marks Ashtead Technology’s seventh acquisition in the last five years, backing up an organic and acquisition growth strategy set out during its initial public offering in November 2021 and follows the company’s acquisition of WeSubsea in September 2022, which has been integrated and is said to be “performing well”. Chief executive Allan Pirie said: “Hiretech has an excellent reputation and strong track record of delivering high-performance equipment and services to the offshore energy sector and has been a key supplier to Ashtead Technology in recent years. This acquisition provides strong synergies through vertical integration of the supply chain, and meaningfully expands our business by adding complementary capabilities to strengthen our mechanical solutions service line and deliver an enhanced offering to our customers.”