Ashtead Technology (AT) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition of Seatronics and J2 for £63m expands Survey & Robotics capabilities, rental fleet, and international growth opportunities.

• Deepens customer relationships and brings a highly skilled workforce with significant domain knowledge.

• Aligns with strategy to grow internationally mobile and fungible equipment fleet and strengthen presence in key energy markets.

• Consolidates a fragmented market and supports expansion into offshore wind and renewables solutions.

• Strong cultural alignment and market-leading expertise support long-term customer relationships and service line growth.

Financial terms and conditions

• All-cash consideration of £63m, representing 5.2x TTM EBITDA and 7.0x TTM EBITA, on a cash and debt free basis.

• Funded by a £70m increase in the revolving credit facility, raising total RCF to £170m, with a £40m uncommitted accordion.

• Seatronics & J2 delivered £51.5m revenue, £12.1m adjusted EBITDA, and £9.0m adjusted EBITA in the 12 months to 30 September 2024.

• Aggregated gross assets of £31.5m as of 31 December 2023.

• Pro forma leverage at 1.8x, expected below 1.5x by end of 2025.

Synergies and expected cost savings

• Expected to be mid- to high single digit earnings enhancing in the first full year of ownership.

• Integration expected to drive a high teens percentage increase in EBITA during the investment period.

• Margins anticipated to move towards Group levels over the medium term.

• Return on invested capital projected well ahead of Group weighted average cost of capital in year 1.

• Plans for c.£10m fleet investment in the first year to drive growth.