LONDON Dec 9 British engineer Kentz
said on Monday it had agreed to acquire U.S.-based Valerus Field
Solutions for $435 million in cash, to expand its engineering
capability and presence in Latin America.
Kentz, a specialist construction company focused on oil and
gas, mining and infrastructure, which was itself a takeover
target earlier this year, had long said it wanted to grow its
engineering arm in order to bid for more engineering,
procurement and construction (EPC) contracts.
"We've found a very strong and agile business with a strong
culture that fits our own, so we're pleased to have found it,"
Kentz Chief Executive Chris Brown told Reuters.
Brown said the acquisition would give Kentz access to the
U.S. market for both conventional oil and shale, as well as to
Latin America, with Valerus established in Venezuela, Colombia
The deal adds about 700 people to Kentz's 14,500 employees
with a focus on expansion rather than synergy savings.
"There's very little if any integration necessary here ...
no synergies (are) needed to make the deal work," Brown said.
Valerus made core earnings (EBITDA) of $51.5 million on
revenue of $492.9 million last year, Kentz said in the
The firm added the acquisition was expected to be earnings
enhancing within the first full financial year of ownership and
should be completed shortly after a shareholder meeting on Jan.