Middle East contracting firm Nesma & Partners has signed an agreement to acquire energy services group Kent.
Headquartered in Dubai, privately held Kent has been backed by global energy investment firm Bluewater since 2015 and comprises several former oil and gas service businesses including SNC-Lavalin, Atkins and Houston Offshore Engineering.
The deal – the value of which has not been disclosed – will see Nesma acquire the company via an all-share purchase, while Bluewater will exit the group.
The company will continue to offer the same services under the Kent brand, with “no changes” to its decision-making structure or its core service offering, the new owners said.
Its workforce of some 13,000 global employees, which includes UK offices in Aberdeen, Edinburgh, Glasgow and London among others are understood to be unaffected by the transition, though the company has suggested there may be further recruitment as part of its growth plans.
The current leadership team will remain in place and operating four existing service lines: consulting; engineering & projects; commissioning, completions & start-up; and Operations & Maintenance.
Nesma & Partners said the new backing would allow Kent to “double down” on its efforts to address challenges and opportunities in the global energy transition.
Completion is anticipated by the end of the calendar year, subject to regulatory approvals, at which point Nesma & Partners will become 100% owner.
Based in Al Khubar near Dhahran, the Saudi contractor was established some 40 years ago to help develop the Kingdom’s economy and has since worked across many industrial and infrastructure projects.
With a 36,000-strong workforce, it now offers services to the industrial, energy, civil and buildings, and infrastructure sectors, as well as electro-mechanical capabilities.
Who is Kent plc?
Kent’s roots lie in a small family electrical business formed in Ireland in 1919, which grew to become the construction and electrical services group Kentz. Following a management buyout of the firm in the late 1980s, former owner Frank Kent also went on to establish rival Kentech.
In 2014 Kentz was bought by SNC-Lavalin, while Bluewater became the primary investor in Kentech the following year.
In 2021 Kentech announced the acquisition of SNC-Lavalin’s oil and gas unit, in a deal that combined Kentech, SNC-Lavalin Oil & Gas and their previous acquisitions of the former Atkins Oil & Gas, Kentz and Houston Offshore Engineering – a deal that created the current structure of Kent plc.
Since Bluewater’s entry in 2015 company revenue has reportedly grown tenfold, fuelled in part by its major acquisitions.
Now a $1.4 billion revenue business, it works across the conventional energy, renewables, low carbon, chemicals and processing sectors, with recent awards including work on a string of UK offshore wind developments, CCS projects and hydrogen schemes.
Saudi joint venture
Nesma & Partners began working with Kent in June 2022 to exploit their respective strengths when they established a Joint Venture, NesmaKent, as an EPC contractor for Saudi Aramco.
Its goal is building an autonomous engineering center of excellence in Saudi Arabia to develop new capabilities in engineering, procurement, and construction services relating to carbon capture, blue hydrogen, and blue ammonia technologies.
“This is an exciting time for our company as we look to expand our reach and capabilities,” said Nesma & Partners president and CEO Samer Abdul Samad.
“We are deeply impressed with the growth and achievements of Kent so far. We are looking forward to supporting the Kent business to not only continue but supercharge its current trajectory of success. By leveraging the strengths of both companies, we are confident that we can deliver even more value to our customers and achieve our goals for growth and success.”
Kent CEO John Gilley said the firm was “thrilled” to work with the Saudi group on the next stage of its journey.
“This agreement marks an exciting, ground-breaking development for Kent. With the backing and support of Bluewater over the past eight years, we have been able to cement our position as a leading global energy services provider.
“Now, under the ownership of Nesma & Partners, the Kent brand and all our teams worldwide will have more opportunities to develop and grow our world-class lifecycle services to our clients”.
Bluewater director Marcello Stroppa added: “We have enjoyed working with the leadership team of Kent over the past eight years.
“The team’s appetite for entrepreneurship is truly admirable, and all of us here at Bluewater are sure that with the added support and impeccable reputation of Nesma & Partners, the future continues to be bright for the Kent business.”
