Diversification for Aberdeen firm
Wood Group acquires Texas contractor in $150m deal
Wood Group has acquired the Texas-based Infinity Group, a family-owned industrial construction and maintenance contractor, for an initial consideration of $150 million (£100m).
Established in 1952, Infinity is headquartered in Clute, Texas, with six additional locations along the Gulf Coast.
It provides a range of services including mechanical construction, fabrication, project management, turnarounds, maintenance services, heavy civil works, site preparation, and electrical and instrumentation services.
The existing management team will continue to lead the business, which has approximately 2,500 staff. It has gross assets of about $92m and is forecast to generate EBITA of $26m this yeaer.
Infinity will operate within the Wood Group PSN Americas business unit, creating a brownfield service offering to the downstream market that complements the existing services of Wood Group PSN Australia Asia Pacific within the refining, chemicals and LNG sectors.
Working in collaboration with Wood Group Mustang, the acquisition give the company an opportunity to offer a turnkey design and construct industrial service offering.
The US downstream market offers significant growth opportunities and Infinity will provide an excellent platform to grow geographically from the Texas Gulf Coast into neighboring US markets.
Dave Stewart, Wood Group PSN chief executive, said: “The addition of The Infinity Group gives Wood Group PSN service line expansion, sector diversification, and entry into the US petrochemical and other downstream sectors, coupled with access to new clientele. Their 60-year history is a testament to the relationships they have built that we look forward to continuing and growing.”
Harold Monical, Jr., president of Infinity Construction Services, said: “Joining Wood Group allows us to expand our service offering to their diverse customer base and gives us exposure to larger scale projects while also continuing to serve our current market and clients.”
The transaction is subject to a number of conditions, including US anti-trust approval, and completion is expected in late 2015.