Global engineering contractor Motherwell Bridge has been acquired by Cape plc, the international provider of critical support services to the energy and mineral resources sectors.
The £37.65 million deal will provide Motherwell Bridge with the resources to significantly grow the business in the future by allowing it to take on larger projects in overseas markets and increase its service offering.
Motherwell Bridge, headquartered in Lanarkshire, Scotland, now employs around 300 people and is recognised internationally as a leading provider of storage tanks, gasholders and heat exchangers in the energy and steel markets both in the UK and around the world.
The senior management team at Motherwell Bridge, led by chief executive Russell Ward, will be retained and will continue to drive the company forward from its base in Motherwell.
Motherwell Bridge was acquired by the Kuwait Finance House from Bahrain in 2008 in a leveraged buyout, with Ward brought on board to transform the company’s fortunes and lead it back to profitability.
Latest figures show Motherwell Bridge generating an EBITA profit of £4.8 million for the year ending 31 December 2012 on revenues of £34.6 million.
Commenting on the deal with Cape, Russell Ward said: “This is an excellent deal for Motherwell Bridge.
“While the business has achieved good growth over the past few years, Cape’s significant resources and footprint will help accelerate and realise our growth plans in the UK and overseas.
“There is no doubt that having the backing of a leading industry player in the form of Cape will signal a major transformation of the company.”
Joe Oatley CEO of Cape said: “The acquisition of Motherwell Bridge is in line with Cape’s strategy to broaden our portfolio of essential critical industrial services.
“Cape is now able to provide its clients with a complete tank maintenance solution. Motherwell Bridge has tremendous expertise, reputation and brand recognition in the oil and gas storage tank market, including a market leading position in the UK and we expect to accelerate Motherwell Bridge’s overseas growth through Cape’s international footprint.”
KPMG’s Corporate Finance team advised management at Motherwell Bridge and Kuwait Finance House on the transaction.