Last checked at 2 Jan 2013 08:36
2 January 2013
Babcock International Group PLC
Acquisition of LGE Process
Babcock International Group PLC (Babcock, the Group), the UK's leading engineering support services company, announces that it has acquired LGE Process (LGE) from The Weir Group PLC for an enterprise value of £23 million.
LGE, based in Edinburgh, designs and builds plants for the processing, storage and handling of liquid gases and is a market leader in the supply of these solutions to the marine and onshore liquid gas sectors.
LGE will be combined with Babcock's Design Services (DS) business unit, within the Marine and Technology division. DS operates in both the naval and commercial marine markets, including the oil and gas market, and has built an excellent reputation with its key customers for developing innovative and cost effective design and conversion solutions for a range of marine vessels. The combined businesses will create a medium-sized, specialist energy and marine technology business delivering a wider offering including the design and installation of mechanical, electrical and chemical process equipment for ships, oil and gas platforms and onshore support facilities.
In the financial year ended 30 December 2011 LGE generated gross revenue of £26.3 million and operating profits of £3.0 million. The acquisition was completed on 28 December 2012.
Peter Rogers, Chief Executive of Babcock, commented:
"The acquisition of LGE and its combination with our existing expertise in Design Services will create a strong business, well positioned to build on its current positions and develop into new commercial marine markets, particularly within the oil and gas market."
Enquiries
Babcock International Group PLC 020 7355 5300
Bill Tame - Finance Director
Terri Wright - Head of Investor Relations
FTI Consulting 020 7269 7291
Andrew Lorenz
Nick Hasell