Valerus Enters into an Agreement for Kentz to Acquire Valerus Field Solutions
for US$435 Million
HOUSTON, Dec. 9, 2013 /CNW/ - Valerus (www.valerus.com) 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:
-- 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
-- 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 www.Valerus.com (or the Kentz website
www.kentz.com) 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 www.valerus.com.
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