Engineering services group EnerMech has acquired an Australian-based business in a move which takes it into the global electrical and instrumentation sector for the first time.
Aberdeen-headquartered EnerMech has bought EPS Group, which operates across Australia and the Americas, and employs 250 staff, in the deal for an undisclosed sum.
EPS operates bases in Brisbane, Darwin, Melbourne, Sydney, Houston and Louisiana, and has annual revenues of more than A$85 million (£52m).
The company specialises in electrical and instrumentation work, hazardous area inspection, high voltage testing and mechanical services for oil and gas, metals, utility and infrastructure projects.
It has worked on six of the world’s largest liquefied natural gas (LNG) facilities and is contracted on some of Australia’s biggest infrastructure projects, including the A$2.1 billion Sydney Light Rail project, major defence industry contracts and the country’s largest road building programme, the A$16.8bn WestConnex motorway.
The acquisition of EPS widens our exposure to infrastructure, power and defence marketsDoug Duguid
Its US subsidiary is involved in the LNG pre-commissioning market with projects including Sabine Pass and Freeport LNG.
While the value of the deal was not revealed, additional funding has been provided by 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, which employs some 2,300 staff in total, said the deal paves the way for providing a “more focussed integrated services offering to clients”.
Doug Duguid, EnerMech chief executive, said: “Adding a global electrical and instrumentation (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.
“The acquisition of EPS Group also widens our exposure to the infrastructure, power and defence markets.”
Duguid added that the deal was a “strong vote of confidence” in the business by its bankers and Lime Rock. About 30 per cent of EPS Group’s business is in mechanical services, which dovetails with EnerMech’s core business.