EnerMech acquires EPS Group in its largest ever deal
18 January 2017 by Sotiris KanarisEngineering services specialist EnerMech has acquired EPS Group, which operates in the electrical and instrumentation (E&I) sector, in its largest deal to date.
Through its offices in Australia and the US, EPS Group serves customers in Oceania and the Americas. It employs 250 staff and its annual revenues exceed AUD85m.
The company specialises in E&I, hazardous area inspection, high voltage testing and mechanical services for oil and gas, metals, utility and infrastructure projects.
EPS Group has worked on six of the world’s largest liquefied natural gas (LNG) facilities and is contracted on some of Australia’s biggest infrastructure projects, including the AUD2.1bn Sydney Light Rail project, major defence industry contracts and Australia’s largest road building programme, the AUD16.8bn WestConnex motorway.
Its US subsidiary is supporting the expansive LNG pre-commissioning market with projects including Sabine Pass and Freeport LNG.
About 30% of EPS Group’s business is in mechanical services, including speciality welding, which dovetails with EnerMech’s core business which includes cranes and lifting, valves, industrial services, hydraulics, and process, pipelines and umbilicals.
EnerMech said the EPS Group acquisition paves the way for providing a more focussed integrated services offering ideally suited to the downstream, infrastructure, offshore and defence industries.
Doug Duguid, EnerMech chief executive officer, said: “Adding a global E&I capability was essential to meet a demand from many of our customers who are looking for us to provide integrated commissioning and maintenance services.
“We have invested to organically develop our own E&I capability but by combining our expertise with EPS, this allows us to gain an immediate track-record and excellent reputation for service delivery in this area. The acquisition of EPS Group also widens our exposure to the infrastructure, power and defence markets.”
The value of the deal was not disclosed but additional funding has been provided by Aberdeen-based EnerMech’s three banking partners, Bank of Scotland, HSBC and DNB, alongside long-standing equity partners Lime Rock Partners, in order to support the deal.
EPS Group managing director Paul Buckley and fellow directors John Cox and Brett McGrane will remain with the business and have become shareholders in the wider EnerMech Group.
