The Carlyle Group acquires EnerMech

The transaction is expected to close in 4Q18, subject to customary anti-trust and regulatory approvals. Capital for the investment will come from Carlyle International Energy Partners (CIEP), a US$2.5 billion fund that invests in the global oil and gas sector outside North America. The Fund’s mandate includes exploration and production, mid- and downstream and oilfield services.

EnerMech employs 3500 staff across 40 locations in the UK, Norway, the Middle East, Caspian, Asia, Africa, Australia and Americas. The company works on large scale projects across the oil and gas, LNG, renewables, defence, power, infrastructure and petrochemicals sectors.

In September 2018, EnerMech revealed annual accounts (for the full year) to December 2017 with revenues of £361 million and profits (EBITDA) of £43.6 million, and forecast that 2018 revenues would reach £430 million with profits in the region of £59 million.

EnerMech’s Chief Executive Officer, Doug Duguid, said: “This transaction marks the beginning of a new chapter for EnerMech as we continue to develop our business, grow our global footprint and enter new markets. We are excited to be partnering with CIEP, whose expertise and track record in the energy space will provide valuable support for our strategy and next phase of growth.

“We are very pleased with the strong support we have enjoyed from Lime Rock over the last decade in building a thriving and sustainable business. This transaction is a natural progression in the life of any ambitious company and with the backing of Carlyle Group, which enjoys extensive relationships in the upstream and downstream sectors, we will be focused on doubling the size of the business in the next five years.”

This acquisition is CIEP’s first investment in an energy services business, complementing its current portfolio of investments in exploration, midstream and downstream and storage sector companies.

Marcel van Poecke, Head of CIEP, said: ““EnerMech is an attractive, well-positioned international integrated energy, infrastructure and industrial services company, led by a strong team.

“The company has multiple avenues for growth. We believe potential synergies across CIEP’s portfolio companies as well as the broader Carlyle family are attractive. We look forward to working with the team and supporting EnerMech’s continued growth.”

Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/17102018/the-carlyle-group-acquires-enermech/