Deal is 'vote of confidence'
EnerMech ties-up acquisition Down Under
EPS Group employs 250 in Brisbane, Darwin, Houston, Louisiana, Melbourne and Sydney and has annual revenues of more than A$85 million.
It has worked on six of the world’s largest LNG facilities and is contracted on some of Australia’s biggest infrastructure projects, including the A$ 2.1bn Sydney Light Rail project and major defence industry contracts.
The value of the deal was not disclosed but additional funding has been provided by Aberdeen-based EnerMech’s three banking partners, Bank of Scotland, HSBC and DNB, alongside long-standing equity partners Lime Rock Partners.
EPS Group managing director Paul Buckley and fellow directors John Cox and Brett McGrane will remain with the business and have become shareholders in the wider EnerMech Group.
EnerMech has 2,300 staff working across its global business and the EPS Group acquisition paves the way for providing a more focussed integrated services offering ideally suited to the downstream, infrastructure, offshore and defence industries.
Doug Duguid, EnerMech chief executive, said: “Adding a global E&I capability was essential to meet a demand from many of our customers who are looking for us to provide integrated commissioning and maintenance services.
“We have invested to organically develop our own E&I capability but by combining our expertise with EPS, this allows us to gain an immediate track-record and excellent reputation for service delivery in this area. The acquisition of EPS Group also widens our exposure to the infrastructure, power and defence markets.
“This deal is a strong vote of confidence in our business by our three banking partners and Lime Rock, and all have provided additional funding to support the acquisition.”
About 30% of EPS Group’s business is in mechanical services, including speciality welding, which dovetails with EnerMech’s core business which includes cranes and lifting, valves, industrial services, hydraulics, and process, pipelines and umbilicals.