17/12/2014 - 13:42

Valmec in Exterran acquisition

17/12/2014 - 13:42

Bookmark

Save articles for future reference.

Local engineering and construction business Valmec will purchase the Australian subsidiary of US oil and gas services giant Exterran, funding the purchase through cash reserves and additional debt.

Valmec in Exterran acquisition
Valmec Ltd. is an Australian energy services group

Local engineering and construction business Valmec will purchase the Australian subsidiary of US oil and gas services giant Exterran, funding the purchase through cash reserves and additional debt.

Valmec said the deal was part of a strategic plan to provide services to the three new LNG projects commencing production in the next two years.

Exterran specialises in gas compression, production and processing equipment and operations, and the Australia subsidiary has 50 staff with offices in five centres around the country.

The value of the acquisition was not disclosed.

Valmec managing director Steve Dropulich said Exterran was widely regarded as the world’s number one provider in the industry.

“We recognised that we needed an Australian-based full sales and service proposition, as part of our strategy of providing a ‘sole source solution’ to our clients,” he said.

“(The acquisition) expands Valmec’s capabilities in the sector and leverages both groups to the expanding Australian gas sector.”

Valmec was unchanged at 18.5 cents per share at the close. 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options