UAE-based Kentech Corporate Holdings has entered into a definitive agreement to acquire the oil and gas business of Canadian global engineering, and construction company SNC-Lavalin Group.
Kentech, a specialty services and solutions company for the energy industry, is being funded by Blue Water Energy, a multinational energy investment firm. It works in three main areas and they are engineering and projects, commissioning and start-up services, and turnaround, repairs, and modifications.
Kentech said in a statement, “The prospective acquisition includes the people and assets brought together through SNC’s acquisition of Kentz and other energy services businesses and would create a company that can provide full asset life cycle services to the energy industry.” The deal will likely be concluded in the first half of 2021, it added.
By acquiring the oil and gas company of SNC-Lavalin, Kentech will provide a complete suite of services across the asset lifecycle, from design and build, commissioning, and startup through modification, maintenance, and turnaround, as well as decommissioning services. Further, it will help speed up the growth plan of the company.
“With a presence in key countries in the Americas, Europe, and the Caspian, the Middle East and Africa, and the Asia-Pacific region, this transaction enables Kentech to deliver its best in class services to clients across all global energy markets. By investing now, we are strategically positioning Kentech as a leading energy services firm to take advantage of the next cycle of growth in the sector. We are accelerating our growth strategy by several years by acquiring additional expertise, a wider global reach, and improving our technical differentiation but importantly, never compromising on our operational and geographical agility which is paramount for our joint key clients.”
According to him, the acquisition increases Kentech’s geographical footprint and the number of employees to over 10,000. The company will have a backlog of $1.1 billion, and gain from specialist talent, market reach, and a robust balance sheet, to enable the business to compete for premium contracts covering complex and technical projects.
“Also, we are actively addressing the challenges of the global energy transition, and this acquisition has given us an entry point to realize our long-held ambitions to become a significant player in this space. It is an area of business that our clients will be investing heavily in,” concluded Mr. Gilley.