Dubai-based Kentech Corporate Holdings said it has entered into a definitive agreement to acquire the oil and gas business of Toronto-listed SNC-Lavalin Group, a global engineering and construction group.
A specialist services and solutions firm for the energy sector, Kentech is being backed by the global energy investment firm, Blue Water Energy.
It operates in three key areas: engineering and projects; commissioning and start-up services; and turnaround, maintenance and modifications.
The Dubai group said the prospective acquisition includes the people and assets brought together through SNC’s acquisition of Kentz and other energy services businesses, and would create a company that can provide full asset life cycle services to the energy industry.
The transaction is likely to be completed in the first half of 2021, it added.
By acquiring SNC-Lavalin’s oil and gas business, Kentech will provide the full suite of services through the lifecycle of an asset - from design and build, commissioning and startup, through to modification, maintenance and turnaround, as well as decommissioning services.
It will help accelerate Kentech’s growth strategy and is part of of the company’s efforts in addressing the challenges and opportunities of the global energy transition.
"With presence in key countries in the Americas, Europe and the Caspian, the Middle East & Africa and the Asia-Pacific region, this transaction enables Kentech to deliver its best in class services to clients across all global energy markets," remarked its CEO John Gilley.
"By investing now, we are strategically positioning Kentech as a leading energy services firm to take advantage of the next cycle of growth in the sector," he remarked.
"We are accelerating our growth strategy by several years by acquiring additional expertise, a wider global reach, and improving our technical differentiation but importantly, never compromising on our operational and geographical agility which is paramount for our joint key clients," he stated.
With this acquisition, the company is well positioned to support moving its clients to new energy transition projects as the sector moves towards a cleaner and greener future, he added.
It increases Kentech’s geographical footprint and the number of employees to over 10,000.
The company will have a backlog of $1.1 billion, and benefits from specialist talent, market reach and a robust balance sheet to allow the business to compete for premium contracts covering complex and technical projects, he stated.
According to Gilley, the combined roster of blue-chip clients includes ADNOC, BP, Chevron, ExxonMobil, KOC, Qatar Petroleum, Saudi Aramco and Shell, as well as petrochemicals firms INEOS, LyondellBasell and Nova Chemicals.
"Also, we are actively addressing the challenges of the global energy transition and this acquisition has given us an entry point to realise our long-held ambitions to become a significant player in this space. It is an area of business that our clients will be investing heavily in," he noted.
"What excites me the most about this acquisition is the prospect of combining, and in some cases reuniting, the professional men and women of our two companies and working with them to reset and transform our way into a very bright future," he added.-TradeArabia News Service