Babcock International Group PLC (Babcock), the UK’s leading engineering support services company, announces that it has acquired LGE Process (LGE) from The Weir Group PLC for an enterprise value of £23 million.
LGE will be combined with Babcock’s Design Services (DS) business unit, within the Marine and Technology division. DS operates in both the naval and commercial marine markets, including the oil and gas market, and has built an excellent reputation with its key customers for developing innovative and cost effective design and conversion solutions for a range of marine vessels.
The combined businesses will create a medium-sized, specialist energy and marine technology business delivering a wider offering including the design and installation of mechanical, electrical and chemical process equipment for ships, oil and gas platforms and onshore support facilities.
Peter Rogers, Chief Executive of Babcock , commented:
“ The acquisition of LGE and its combination with our existing expertise in Design Services will create a strong business, well positioned to build on its current positions and develop into new commercial marine markets, particularly within the oil and gas market.”
In the financial year ended 30 December 2011 LGE generated gross revenue of £26.3 million and operating profits of £3.0 million. The acquisition was completed on 28 December 2012.
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Press Release, January 2, 2013