The 880p per share price is in line with February's announcement that talks were underway and Aggreko's board is recommending the offer, which is a 39% premium to the start of the bid period.
Updates from Aggreko recently have shown trading recovering from coronavirus disruption, while it has also picked up a US$315mln contract to power Tokyo’s Olympic games if they go ahead.
Ken Hanna, Aggreko’s chairman, said: “The leadership team set out a clear vision in November 2020 for how Aggreko can both grow profitably through the energy transition and achieve market-leading carbon reduction targets.
“This strategy was well received by our partners, our customers and investors, and I Squared Capital and TDR Capital are fully supportive.”
Adil Rahmathulla of I Squared Capital added that to change to a net-zero emission business Aggreko requires significant investment in clean technology and a step-change in the pace of transformation to build on its market leadership.
TDR recently helped bankroll the £6.8bn acquisition of Asda from Walmart and this latest approach is part of increasing M&A activity from private equity groups.