Kentz plans acquisition of Valerus field solutions business

Back in August, Kentz, the UK/Ireland based engineering and contracting group, fought off a takeover bid from AMEC. The AMEC interest was said to be particularly in the Kentz expertise in LNG processing facilities. Kentz at the time had $180m in cash reserves, and were quoted to be seeking an acquisition (See the INSIDER Newsletter for September page 7).

This month Kentz announced the proposed acquisition of the Valerus field solutions business in the USA for $435m. Valerus provides a full suite of products and services for oil and gas surface facilities from the well head to the pipeline. Valerus will offer Kentz exposure to the onshore shale gas market, and increased exposure to Latin American markets, with the Valerus presence in Brazil, Mexico, Colombia and Venezuela. Valerus 2012 revenues were $493m, with EBITDA of $52m: it employs 665 people.

The previous post on this weblog mentions that AMEC has been reported as considering a bid for US based Foster Wheeler: combined these two groups would create an energy services group worth $8Bn.

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