Member Article

Interserve acquires Omani construction firm for £25.4m

Reading-based construction business, Interserve, has acquired an 85% stake in subsidiary businesses owned by Willbros Middle East Ltd.

In a $41.3m (£25.4m) deal, the firm said it will acquire the majority of The Oman Construction Company, while the remaining 15% will be owned by an Omani partner.

The bought subsidiaries include businesses in oil field maintenance, construction and logistics services.

Interserve hopes to increase its global capacities in the oil and gas market, in addition to its already existing locations in Europe, the Middle East, Africa, Asia, and North and South America.

Oman, where the bought subsidiaries are based, has been identified as as a key growth market for fuels, and Interserve said contracts worth $2.5bn (£1.5bn) per annum will be available in the oil, gas and power industries.

Interserve’s chief executive, Adrian Ringrose, said: “Interserve sees the Middle East oil and gas sector as a key growth market and this acquisition further develops our presence in the region.

“As part of Interserve, we believe TOCO’s growth will be accelerated through innovation, enhanced business development and a number of operational efficiencies.”

Pre-tax profits for The Oman Construction Company came in at $6m (£3.7m) in the 10 months up to the end of October 2012, while Interserve reported gross revenues of £2.3bn.

This was posted in Bdaily's Members' News section by Miranda Dobson .