Engineering services specialist EnerMech has entered the electrical and instrumentation (E&I) sector with the acquisition of EPS Group in Australia and the Americas.
While the value of the deal was not disclosed, EnerMech did reveal that additional funding was provided by banking partners, Bank of Scotland, HSBC, DNB, and long-standing equity partner Lime Rock.
EPS Group managing director Paul Buckley and directors John Cox and Brett McGrane will remain with the business and become shareholders in the EnerMech Group.
The group, specializing in E&I, hazardous area inspection, high voltage testing and mechanical services for oil and gas, metals, utility and infrastructure projects, has worked on several large LNG facilities and is contracted on some of Australia’s biggest infrastructure projects.
Some of the more notable ones are the AUD 2.1 billion Sydney Light Rail project and Australia’s largest road building program, the AUD 16.8 billion WestConnex motorway (at current rates, AUD 1 billion = $755 million). Its US subsidiary is supporting the expansive LNG pre-commissioning market with projects including Sabine Pass and Freeport LNG.
Doug Duguid, EnerMech’s CEO, said: “Adding a global E&I capability was essential to meet demands from many of our customers who are looking for us to provide integrated commissioning and maintenance services.
“Combining our expertise with EPS will allow 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 defense markets.”
About 30 percent of EPS Group’s business is in mechanical services, including specialty welding, which dovetails with EnerMech’s core business which includes cranes and lifting, valves, industrial services, hydraulics, and process, pipelines, and umbilicals.
Paul Buckley said: “Being part of the larger EnerMech Group, our business is now better positioned to take on larger projects not only in Australia and the Americas but across the globe.”