Kentz acquires South African engineering services company RNE - 08 February 2011
London, 08 February 2011 – Kentz Corporation Limited “Kentz” (LSE: KENZ), the holding company of the Kentz Engineering and Construction Group, is pleased to announce that it has acquired RNE Engineering and Projects (Pty) Ltd (“RNE”), a leading supplier of engineering services, from its founders and other shareholders for a total cash consideration of approximately South African Rand 73 million (approximately US$10 million) over a period of four years.
RNE undertakes project management, engineering and design services including process, mechanical, piping, civil and structural engineering for oil, gas and petrochemical process plants. It is involved in both capital expenditure projects and asset enhancement production services and has approximately 85 employees based in two offices in Secunda and Sasolburg, South Africa.
RNE has a successful track record as a leading supplier to Sasol and has worked with Kentz in South Africa for over three years. The partnership will support the growth of activity in South Africa as well as the opportunity to jointly tender for select Engineering, Procurement and Construction (EPC) contracts.
The acquisition is aligned with Kentz’s stated strategy of growth through smaller, value enhancing opportunities to supplement its existing capabilities across the global footprint of the Group. The acquisition will be earnings enhancing in the first full year of ownership.
Hugh O’Donnell, Chief Executive Officer, of Kentz Group commented:
“RNE has built an impressive market presence in the oil, gas, petrochemicals, metals and mining market sectors in South Africa. By bringing the experience of RNE together with Kentz’s presence in a broader number of sectors we are now well positioned to offer an expanded range of niche EPC solutions to a wider client base throughout Southern Africa.
“Our business is about people and we have a found a strong cultural fit with the RNE senior management team. We share the same values in delivering world class projects safely for our clients.”
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For further information please contact:
Kentz Corporation Limited
Tel: +44 (0)20 3159 4000
Elizabeth Rous
Catríona Nugent
Evolution Securities Limited (Nomad and Broker)
Tel: +44 (0)20 7071 4300
Rob Collins
Chris Sim
Tim Redfern
About Kentz
Kentz is a global engineering specialist solutions provider, which serves a blue chip client base primarily in the oil and gas, petrochemical and mining and metals sectors. It is listed on the AIM market of the London Stock Exchange (symbol: KENZ). In the year ending December 2009, the company generated revenues of $704.7 million and profit before tax of $44.5 million.
Kentz has over 10,500 employees in 27 countries. Its three main business lines are; specialist engineering, procurement and construction (EPC) services, construction, and technical support services. It has a proven track record of delivering mechanical, electrical, controls and instrumentation engineering, construction and management services in some of the most remote locations on earth.
Please find further information on the Kentz website www.kentz.com
About RNE
RNE Engineering and Projects is a specialist engineering solutions service provider, which serves clients in the oil and gas, petrochemical, mining and metals sectors. Based in South Africa, it has been privately owned since inception, and has significant expertise in leading edge engineering systems and software, including 3D design and modelling. RNE’s experienced team have a strong track record of managing all aspects of projects within the industry and guarantee high levels of client service and satisfaction.