Aggreko agrees Russian divestment with private equity owners

Aggreko is to divest its Russian and Kazakhstan businesses by selling them to its private equity co-owners, TDR Capital and I Squared Capital Partners.

Aggreko’s immediate holding company, Albion JVCo, said it had engaged with potential third party buyers throughout 2023 but that the “challenging regulatory approval regime in Russia” made the sale difficult.

It said this had let it to discuss a sale to TDR and I Squared “such that Aggreko Eurasia would no longer form part of the Albion JVCo Ltd Group, but with ultimate ownership of Aggreko Eurasia unchanged.”

The businesses for sale reported revenues of US$123 million in 2023 and the purchase price has been agreed at $108 million, subject to regulatory approvals.

Albion said it was highly probable that the transaction will be approved by 31 December 2024, although uncertainty remained and it could take longer.

Aggreko’s owner, Albion JVCo, stated its aim to sell the Eurasian business following the Russian invasion of Ukraine.