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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

HOUSTON, Dec. 9, 2013 /CNW/ - 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 customers."

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:

    --  Expand 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.
    --  Provide 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 infrastructure.

Benefits of the separation of Contract Services and AMS into a stand-alone 
company The benefits of separating the Contract Services and AMS business 
lines include:
    --  The 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.
    --  Capital 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:

Valerus  Media: 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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CO: Valerus ST: Texas NI: OIL UTI CST MNA

-0- Dec/09/2013 13:01 GMT

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