Kentz buys South African firm
Published 09/02/2011 | 05:00
Clonmel-headquartered engineering group Kentz has made a small bolt-on acquisition -- its first since it became a listed company in 2008, after agreeing to pay the equivalent of €7.4m for a South African engineering services firm.
Kentz, which provides engineering services all over the world to clients such as Exxon Mobil and Shell, said the purchase price was payable over a period of four years.
It will acquire RNE Engineering and Projects in a deal that Kentz chief executive Hugh O'Donnell said would enable the group to offer an expanded range of niche engineering, procurement and construction solutions in southern Africa.
Mr O'Donnell began his career working in South Africa for Anglo American and headed up Kentz's operations there in the late 1990s.
RNE is a lead supplier to oil firm Sasol and employs 85 people.
It provides project management, engineering and design services for oil, gas and petrochemical process plants.
Kentz said the acquisition would be earnings enhancing in the first year. Shares in Kentz closed up slightly at £3.97 (€4.67) in London.