Engineering services firm EnerMech said yesterday that it had snapped up an electrical and instrumentation (E&I) business with bases in Australia and the US.
Bosses at Aberdeen-headquartered EnerMech said the acquisition of EPS Group would help meet demand for integrated commissioning and maintenance services.
The transaction is also expected to open up new markets in infrastructure, power and defence.
EnerMech said its three banking partners, Bank of Scotland, HSBC and DNB, alongside equity partners Lime Rock, had helped fund the eight figure deal.
EPS employs 250 employees in Sydney, Melbourne, Brisbane, Darwin, Houston and Louisiana, and has annual revenues of more than A$85million (£52million).
The company specialises in E&I, hazardous area inspection, high voltage testing and mechanical services for oil and gas, metals, utility and infrastructure projects.
The firm 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.
Its US subsidiary is supporting the LNG pre-commissioning market with projects including Sabine Pass and Freeport LNG.
EPS managing director, Paul Buckley, and fellow directors John Cox and Brett McGrane will remain with the company and have become EnerMech shareholders.
Mr Buckley said the takeover would allow the business to take on larger projects across the globe.
EnerMech chief executive Doug Duguid said: “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.”
EnerMech, which supplies a broad range of mechanical services to the international energy and infrastructure industries, employs 2,300 people and operates from about 35 bases worldwide.
Its UK facilities are in Aberdeen, Bristol and Great Yarmouth.
In December, EnerMech said Subsea 7 had awarded it a deal to supply pre-commissioning services on the Woodside-operated North West Shelf projects Persephone and North Rankin Complex in Australia.
A month earlier, the firm said its cranes and lifting division had enjoyed an £85million boost from contract wins, extensions and renewals.
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