31.03.2008

Ashtead Technology on the block

The Ashtead group, owner of A-Plant in the UK and Sunbelt Rentals in the USA, has put Ashtead Technology, its oil and technology business up for sale.

Ashtead has retained NM Rothschild to seek potential buyers and it has sent documents on the company to about 50 potential buyers.

Ashtead’s share price has been severely affected by investor concerns over it debt levels and exposure to the US building market following the acquisition of Nations Rent last year.

Ashtead Technology should fetch a good price in the current energy market and only represents a tiny fraction of the group’s revenues and profits. It has grown strongly this year but is still only likely to turn in revenues of around £25 million but profits are up by over 70% and could reach £10 million for the full year making it a very saleable proposition.

Vertikal Comment

The sale of Ashtead Technology at what could be the top of the market makes good sense, allowing the group to reduce its debt levels and focus on its core rental businesses.

Ashtead continues to do well and is seeing a comeback in its A-Plant business while the integration of Nations Rent appears to be progressing very well.