ALEC Engineering and Contracting (ALEC), a part of the Investment Corporation of Dubai (ICD), has signed a share purchase agreement to acquire TARGET Engineering Construction Company. With this agreement, the companies will have a joint turnover of close to $2 billion.
Founded in 1975, TARGET Engineering operates through four specialized divisions, Mechanical Oil & Gas, Electrical, Civil, and Marine. The company’s customer base is comprised of leading Oil & Gas companies, major Engineering, procurement, and construction (EPC) contractors, government entities and property developers.
Noteworthy projects that it has completed include work at ENEC’s Barakah Nuclear Power Plant, ADNOC Gas Processing’s Ruwais LNG Terminal, Saudi Aramco’s Abqiq plant, and ENOC’s Jebal Ali Refinery expansion. Included are also TARGET Engineering’s current active projects including Borouge 4 and Delma B in a joint venture for ADNOC, and IGDC for ADGAS.
“ALEC has an established track record of continuously enhancing the skills and capabilities within the organization, and leveraging this expertise to enter into, and become a market leader in new market segments. Bringing TARGET Engineering within our fold is a move that plays to both these objectives as their specialist skillsets in Oil & Gas, Energy, including renewables, marine, and industrial construction, perfectly augment ALEC’s capabilities. This will enable us to present an even stronger joint value proposition to customers.”
By acquiring 100 percent of the company, ALEC will now enhance its resources with the significant assets held by TARGET Engineering, including its 11,000-strong workforce, over 30 marine vessels, and 52,000 sqm of API/ASME-certified fabrication facilities.
Additionally, this includes TARGET’s controlling stake in IDROTEC, an Italian specialized marine design engineering firm renowned worldwide for its specialist marine, hydraulic and environmental design for the Oil & Gas sector and marine developments. That said, TARGET Engineering will continue to operate as an independent entity, while drawing on the skills and resources of the broader ALEC Group.
Mr. Chaouci Yassine, CEO of TARGET Engineering said that “Today’s announcement is a landmark event in the over four-decade-long journey of our company. We will now benefit from the strong financial position and world-class leadership and project execution capabilities of ALEC. This will fuel our ambitious growth plans across the Middle East as we can now deliver best-of-breed EPC and specialist marine services to an even broader segment of high-profile regional entities.”