Financial News

  • 14 January 2014, 7:23

4bn UK-Owned Construction Group Eyes Float

The race to join the glut of companies considering share listings on the London market is to be joined by a British-owned provider of temporary accommodation.

Sky News understands that Algeco Scotsman, which is owned by the private equity firm TDR Capital, is at the early stages of preparing for an initial public offering (IPO).

Algeco, which is headquartered in Baltimore, Maryland, is among the world's biggest players in modular construction. It is unlikely to make its bow on the stock market until next year but has begun work with accountancy firms to get its books in shape ahead of a listing, insiders said on Monday.

When it does float on the stock market, Algeco would become one of the largest UK-based companies to do so since the boom in debt-fuelled buyouts began a decade ago.

Algeco's equity is worth roughly 1.6bn while it has about 2.5bn of debt, according to bankers.

The company, which operates in 21 European countries as well as having a major presence in the Middle East and the US, has yet to appoint investment banks to work on the float but is expected to do so later this year.

Last week, Algeco announced the appointment of Stephen Bishop as its new chief financial officer, replacing Thomas Kloster, a move that one source said was part of the planning for an IPO being undertaken by the company.

The temporary accommodation provider is typical of the kinds of companies built through the financial firepower of private equity houses such as TDR

The firm acquired a controlling stake in Algeco SA in 2004. and then embarked on a takeover spree, including in 2005, when it bought the UK-based Elliott Group. Two years later it acquired Wraith in Britain as well as a string of international competitors including Williams Scotsman.

TDR declined to comment on Monday.

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