EnerMech Buys Valve Tech (Australia)
EnerMech has completed the first of five acquisitions it has planned for the next six months with the acquisition of Melbourne-based Valve Tech Engineering in a multi-million pound deal.
Established over 20 years ago, Valve Tech is a well respected provider of servicing, engineering, modification, testing and supply of valves to the oil and gas, power generation, petrochemical and refining industries throughout Australia.
EnerMech is an Aberdeen-based company which provides mechanical services to the energy industry, with bases in 15 countries and annual sales of £140 million (AUD$213 million).
Valve Tech founder and managing director, Chris Tabone, will take a new position in the enlarged business, heading up EnerMech’s valve offering in Australia.
The deal represents a major expansion of EnerMech’s global valve services, procurement and manufacturing network and complements its existing valves supplies and servicing facility in Perth, Western Australia.
EnerMech managing director, Doug Duguid, revealed the company would invest £10 million (AUD$15 million) in its Australian business over the next two years and plans to open bases in Gladstone, Brisbane and Karratha to better service oil and gas, power industry and mining clients.
EnerMech views its valves business line as a vital element of its growth strategy in Australia, where it plans to more than double its workforce to 180 in the next 12 months.
Duguid said: “Valve Tech is an excellent strategic fit for our business and gives us significant maintenance and repair capabilities in addition to our existing offering in the region. It strengthens our geographic reach in eastern Australia and introduces EnerMech to Valve Tech’s broad client portfolio.
“Our valves business line is key to EnerMech’s expansion plans in the Australian energy market and we are really pleased to be working with Chris Tabone and his team. The combined strengths of both businesses give us a very strong platform to become a major player in the valves supply, repair and overhaul market and there are many benefits for both parties.”
Chris Tabone added: “The enlarged business, with its greater scale and resources, will provide our clients with innovative turnkey engineering services, solutions and equipment, which redefines valves services, supply and asset management within Australia.”
The new entity, which will trade as EnerMech Valve Tech, expects to announce several major contract wins in the first quarter of 2013. The company will also roll out its EnerMech LIVE valve management system, giving clients full visibility of all its valve assets.
Press Release, January 17, 2013