West Perth-based Integrated Group Ltd has acquired New Zealand-based labour and support services supplier Wendell Group, and has also announced the appointment of HBF chief executive Michael Gurry as a non-executive director.
West Perth-based Integrated Group Ltd has acquired New Zealand-based labour and support services supplier Wendell Group, and welcomed HBF chief executive Michael Gurry to its board as a non-executive director.
Mr Gurry joins the board as executive director Dion Smith leaves, as part of the company's succession planning. He remains with Integrated.
The Wendell purchase complements Integrated's existing marine services business, Total Marine Services, and continues the group's expansion into oil and gas.
TMS is the biggest provider of labour and catering services to Australia's offshore oil and gas industry.
Integrated chief executive Chris Sutherland said in an announcement that the two companies were an excellent fit.
"Offshore activity continues to grow in New Zealand with a new Floating Production, Storage and Offloading vessel coming onstream next year and new fields being developed," he said.
"TMS and Wendell have worked in partnership for several years now, so we know the quality of their services and why they have been successful."
"It is particularly pleasing that the leadership team of Tim Saville (Commercial Director), Kurt Aldam (Director and NZ Group Manager) and Ray Farrow (Director and Catering Manager) will join TMS and continue to run the New Zealand operations."
Wendell currently provide manning and catering for the major oilfield operator, Shell Todd, for seismic and drilling operators - onshore and offshore - and for construction vessels.
IGL will pay $5 million for Wendell, with an additional earn out amount available dependent upon future financial performance.
The acquisition will be 100% debt funded and will be earnings positive in the current financial year after one off transaction costs are expensed.
Wendell is jointly owned by its original founder, Mr John O'Neil, and Messrs Saville, Aldam and Farrow.
"The Wendell acquisition continues Integrated Group's re-positioning and expansion within offshore oil and gas support," Mr Sutherland said.
"In recent times we have been pursuing marine opportunities in South-East Asia, as well as growing our offshore construction and maintenance services business in Australia."
"Additionally, to restore focus on its core business of managed labour services, Total Marine's offshore fleet was sold to Mermaid Marine Australia in April this year. "
"That asset swap transaction included the acquisition of Mermaid's manning business, as well as a 7 year contract whereby TMS will be the exclusive provider of crewing for the entire Mermaid fleet of more than 20 vessels."
"This latest move, the merging of Wendell and Total Marine Services further strengthens Integrated Group's ability to reap rewards from the record level of activity in oil and gas markets."