Cardno acquires oil and gas engineering services business
PORTLAND, Ore., March 18, 2014
PORTLAND, Ore., March 18, 2014 /PRNewswire/ --Professional infrastructure &
environmental services consultancy Cardno today announced its largest
acquisition to date with the purchase of the PPI Group of companies (PPI)
headquartered in Houston, Texas for US$145 million.
Cardno provides access to over 4300 professionals to help shape the future.
PPI provides specialist engineering services to the oil and gas sector in the
United States, West Africa and Asia Pacific and employs 760 staff. PPI
generated annual revenue of US$133 million and EBITDA of US$21.5 million in
the year ended 31 December 2013.
Cardno CEO, Michael Renshaw said the acquisition of PPI is in line with the
firm's strategy of expansion in attractive growth markets such as energy.
"This acquisition will strengthen Cardno's ability to service the expanding
oil and gas sector in the United States and in key emerging markets," Mr.
He said PPI's engineering services to the midstream and upstream oil and gas
sector will complement Cardno's existing environmental and permitting
capabilities in this market. He also commented that PPI provides Cardno with
new capabilities and proprietary systems in asset and quality management which
has application in other asset intensive industries.
"While concentrated on the oil and gas market, PPI is diversified in terms of
services offered and in geographic markets served. In addition to the primary
markets of the United States and Nigeria, PPI is currently delivering projects
in Australia, Singapore, South Korea, Japan, Malaysia and Angola," Mr. Renshaw
Integral to PPI's significant growth history and reputation has been their
ability to maintain long-term relationships with the major multi-national and
national oil and gas clients such as five of the oil majors, BHP Billiton,
Cobalt and Noble Energy.
Mr. Renshaw said: "The complementary and overlapping client base of Cardno and
PPI presents strong potential for cross-selling across the United States,
Latin America, Africa and Asia Pacific."
"Oil, gas and energy clients will now account for around 25% of Cardno's
annual revenue. We believe this market presents solid opportunities for
organic growth," he said.
The acquisition aligns with Cardno's strategy of market and service
diversification and creates a range of organic growth opportunities through:
oDeepening Cardno's capabilities to support upstream and midstream oil and
gas sector growth
oExperienced leadership bringing new and mutual relationships with
multi-national and national oil and gas companies
oBuilding on a combined successful track record across Africa and
complementary expansion plans for emerging economies in addition to
Australia and the US
oProviding a platform to expand PPI's services across other asset intensive
sectors and clients
Key acquisition risks are mitigated by Cardno's robust due diligence and
"Plans and incentives are in place to ensure PPI's key management will remain
active in the company, which will be known as Cardno PPI," Mr. Renshaw said.
PPI President Randy Sullivan said the global reach and broader service lines
offered by Cardno would be well received by their clients.
"Our staff are excited to join Cardno. There is a strong cultural alignment
between the two firms, a fierce commitment to safety and a track record in
delivering projects in both developed and emerging markets," Mr Sullivan said.
For further information:
Paul Gardiner, President, Americas Region, Cardno +1 (503) 734-1801
Michael Renshaw, Chief Executive Officer, Cardno +617 3369 9822 or +61 448 091
Graham Yerbury, Chief Financial Officer, Cardno +617 3369 9822 or +61 450 324
Randy Sullivan, President, PPI Group +1 (713) 464-2200
About Cardno: Cardno is an ASX200 professional infrastructure and
environmental services company, with specialist expertise in the development
and improvement of physical and social infrastructure for communities around
the world. Cardno's team includes leading professionals who plan, design,
manage and deliver sustainable projects and community programs. Cardno is an
international company, listed on the Australian Securities Exchange [ASX:
About PPI Group: PPI is a multi-discipline engineering group headquartered in
Houston, Texas. PPI offers total project management services including initial
scoping, field development planning, front end engineering and design (FEED),
detailed engineering and design, drilling and construction project management,
field operations, procurement and Quality Assurance. With expertise in all
facets of drilling, production and construction operations. www.ppitech.net
Logo - http://photos.prnewswire.com/prnh/20110907/MM64542LOGO
SOURCE Cardno USA
Press spacebar to pause and continue. Press esc to stop.