Motherwell
Bridge powers ahead with £75m disposal of information systems
division
Deal estalishes
platform for major growth in nerw century
Leading engineering
group Motherwell Bridge is powering ahead into the new century following
the £75m. sale of its Information Systems division in an institutional
buy-out led by Europe’s leading venture capital company 3i.
The sale represents
a massive return on investment for Motherwell Bridge which acquired
the origins of the Information Systems division only six years ago
for £400,000 and has invested £9m. in developing the operation worldwide.
Following its
initial acquisition Motherwell Bridge has developed the Information
Systems division through organic growth and a series of shrewd acquisitions,
building turnover to £44m. in the current year.
Over the last
few years Motherwell Bridge has fundamentally reshaped its engineering
businesses. It has substantially reduced capacity in its operations
which are subject to cyclical demand in supplying capital plant
and equipment to the process plant industries. This business will
account for less than 10% of the group’s turnover this year. At
the same time it has expanded its engineering maintenance services
activities and increased its exposure both by acquisition and organically
to higher added value sectors such as aerospace, nuclear plant maintenance
and decommissioning and railtrack maintenance. These activities
provide the opportunity for future sustainable growth in earnings.
Motherwell
Bridge group chief executive John Lumsden, who has been closely
involved in the development of the Information Systems division,
said: “This sale represents a fitting conclusion to a century
of achievement for Motherwell Bridge. In little more than six years
we have grown the Information Systems division from a small player
into one of the UK’s leading IT solutions businesses with interests
in three continents and employing over 700 staff."
“We believed,
however, that the business had reached a stage where it had the
potential with further investment to become a major international
player. In addition we have opportunities to grow our engineering
activities and the combined investment to fully develop both business
streams would have demanded more investment than could prudently
be provided. This transaction by strengthening our balance sheet
and releasing funds creates a very strong platform from which to
expand in our target sectors."
“We have
made major investment over the last two years to refocus our business
and concentrate on a number of key sectors. Our strategy for growth
is in place for expanding our interests and continuing the success
of Motherwell Bridge in the new millennium.”
During the
past year, Motherwell Bridge has made acquisitions in businesses
involved in railtrack maintenance, nuclear engineering and aerospace,
signalling its intention to expand its engineering knowledge and
expertise into new growth sectors.
The group also
recently unveiled a £10m. investment programme to expand its aerospace
manufacturing operation. The programme involved significant new
investment at Motherwell, strengthening its existing aerospace operation
in Cumbernauld and the acquisition of Lucas Aerospace’s manufacturing
plant in Burnley.
After the disposal,
Motherwell Bridge will employ more than 3,500 people worldwide with
a turnover of £200m. in its engineering businesses.
The Group has
worldwide expertise in engineering and engineering services. Today
Motherwell Bridge is known worldwide for its services to clients
in a wide range of fields, including energy, aerospace, chemicals,
pharmaceuticals, steel and transportation.
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