The deal brings to Lamprell an engineering and contracting business focused on the energy sector.
Dubai-headquartered Lamprell, which provides engineering services to the oil, gas and renewables industry, is to fund the acquisition through equity by way of a new rights issue, debt and existing cash reserves.
Lamprell chief executive Nigel McCue says the deal represents a ‘significant step’ for Lamprell as the business continues to expand into new markets, mostly in the Middle East.
McCue adds: ‘There is a strong complementary fit between Lamprell and MIS, enabling the enlarged group to pursue new opportunities with enhanced resource and technical competence.’
According to a statement released by the company, the purchase will enhance Lamprell’s in-house engineering capabilities, add established businesses in target geographies and consolidate its position as a regional market leader in the rig market.
Lamprell has announced a new rights issue to raise £139.4 million to fund part of the deal.
MIS, which is also based in Dubai, operates primarily in Kuwait, Saudi Arabia and the United Arab Emirates. The company recently reported profit before tax for the year ending 31 December 2010 of £23 million.
Kevin Hudson, managing director of MIS, comments: ‘This agreement is in the best interests of our shareholders, and the complementary nature of our two businesses provides opportunities for the enlarged group, and its employees, going forward.’
Financial advisors for the deal are J.P. Morgan Cazenove, Bank of America Merrill Lynch and HSBC.
