Valerus Enters into an Agreement for Kentz to Acquire Valerus Field Solutions for US$435 Million

Valerus Enters into an Agreement for Kentz to Acquire Valerus Field Solutions
                              for US$435 Million

PR Newswire

HOUSTON, Dec. 9, 2013

HOUSTON, Dec. 9, 2013 /PRNewswire/ -- Valerus ( has entered
into an agreement with Kentz Corporation Limited (LSE: KENZ), the holding
company of the Kentz engineering and construction group, for the proposed
acquisition of Valerus Field Solutions for US$435 million in cash, subject to
a working capital adjustment, payable in cash at completion. The transaction
is, amongst other conditions, subject to approval by Kentz's shareholders.

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The proposed acquisition of the field solutions portion of Valerus includes
the Processing and Treating, Production Equipment, Compression and Integrated
Services business lines. The remaining Valerus contract services and
after-market service (AMS) business lines will be separated to form a
stand-alone company, whose new name will be announced in 2014.

Steve Gill, SVP of Commercial for Valerus, will assume the role of CEO for
Valerus FS under Kentz. Pete Lane, current CEO of Valerus, will continue in
the role of CEO for the remaining company.

Pete Lane, CEO of Valerus, commented: "This is an opportunity for each company
to grow its core business with even more focus and alignment, while continuing
to deliver industry-leading safety and customer service. We look forward to
the potential for new opportunities this will bring for our employees and our

Steve Gill, SVP of Commercial and Business Development for Valerus, commented:
"Valerus has grown to become one of the world's most trusted and experienced
oil and gas handling and processing companies because of our focus on reducing
cycle time, improving productivity and maximizing producer's capital
investment in surface facilities."

Christian Brown, Chief Executive Officer of Kentz commented: "Kentz has
achieved exceptional organic growth over the last five years, and we have
highlighted our desire to expand our offering through selective acquisition
that creates shareholder value.

"We believe that the acquisition of Valerus Field Solutions will help to
establish Kentz as a recognized market leader in providing highly-skilled
process engineering, EPCM and EPC services for small and medium sized oil and
gas processing facilities worldwide."

Benefits of the Kentz acquisition of Valerus Field Solutions
The proposed acquisition will potentially:

  oExpand both companies' operational footprints, with Valerus well
    positioned in the US and Latin America onshore oil and gas market, and
    Kentz well positioned in the Middle East, Africa and Asia Pacific.
  oProvide leverage of complementary capabilities, including Valerus' process
    engineering and modular design expertise and Kentz's project management
    and construction resources, for onshore process facilities and related

Benefits of the separation of Contract Services and AMS into a stand-alone
The benefits of separating the Contract Services and AMS business lines

  oThe ability to focus on delivering service-based solutions for customers
    including contract compression, contract production and processing
    solutions, fee based gathering, processing and pipeline solutions, and
    aftermarket field services globally.
  oCapital to fuel the rapid growth of the contract business and meet the
    expanding needs of customers in key US basins and international oil and
    gas fields.

For more information visit (or the Kentz website or contact:

Maggie Seeliger
+1 (832) 294-6439

Pierpont Communications
Chris Wailes/ Victoria Turek
Houston: +1 (713) 627-2223

About Valerus
Valerus is a worldwide leader in integrated oil and gas handling and
processing. Equipment and services include reciprocating compressor packages,
production equipment, gas processing solutions, liquid separation systems and
a variety of professional field services. Its mission is to develop tailored
solutions for its customers by combining the most experienced people with
innovation and quality equipment. Valerus is committed to achieving the
highest standards in health, safety and environmental responsibility. More
information is available at

SOURCE Valerus
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