Kentz Acquires Further Construction Capability in Canada
CALGARY, Alberta, May 16, 2014
CALGARY, Alberta, May 16, 2014 /PRNewswire/ --
Kentz, the engineering and construction group, is pleased to announce that it
has completed the purchase of the business of Alegro Projects and Fabrication
Ltd ('Alegro'), an organization offering fabrication and construction services
to the industrial sector in Western Canada.
oStrong fit with Kentz's existing Canadian operations; supporting strategy
to increase Kentz's multi-discipline fabrication and construction services
oAdds structural, mechanical and piping (SMP) fabrication, along with site
construction capability, to Kentz's existing in-country electrical,
instrumentation and telecoms expertise
oAlegro has long-term customer relationships with repeat business in the
Western Canadian market; working on multiple projects throughout the
oOver 85 skilled employees, based in both the Nisku fabrication facility
and on a number of project sites in Alberta
oProvides Kentz with a presence in the greater Edmonton area, Alberta's
Background to Alegro
Alegro designs, fabricates, and installs piping, structural steel, and storage
tanks, along with a range of other oilfield equipment. The Company has been in
operation since 2004 and is based in Nisku, Alberta.
Alegro has completed a number of significant facilities projects in Alberta,
for clients in a variety of sectors; in particular oil and gas.
Rationale for acquisition
One of Kentz's strategic objectives outlined in its 2013 & Beyond strategy,
was to acquire SMP capabilities, to augment its existing electrical and
instrumentation (E&I) expertise, and to support Kentz as it evolves as a
multi-disciplined construction contractor within the Canadian region. This
will enable Kentz to target, self-perform and execute multi-disciplined
construction opportunities as a prime construction contractor, as the company
does in many other regions globally.
Business outlook for Canada
CERI estimates capital investment in the Canadian oil sands to add up to $207
billion over the 2013-2022 period, and this estimate excludes additional
maintenance, repairs and operational expenditures. This acquisition further
supports Kentz's capability to significantly target a larger portion of the
Paul Knowles, Director for Kentz's Construction Business Unit in Canada, said:
"The addition of Alegro to our existing E&I construction business in Canada,
creates a wealth of opportunity for Kentz in the Canadian oil and gas
construction market place. Alegro has a strong record of delivering for its
clients and has a strong cultural fit with Kentz; I welcome all at Alegro
onboard and look forward to working with them.
"The addition of further construction capability was a key strategic growth
initiative identified by Kentz and combined with our engineering and technical
services, gives us a rounded offering to existing and new clients across the
For further information see the Kentz websitehttp://www.Kentz.com
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 London Stock Exchange (symbol: KENZ).
In the year ending December 2013, the company generated revenues of US$1.66
billion and profit before tax of US$118.0 million and diluted EPS of 68.07 US
Kentz has over 14,500 employees in 36 countries. Its three main business lines
are; Engineering and Projects, Construction, and Technical Support Services
(TSS). 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.
SOURCE Kentz Corporation Limited
Contact: Kentz Corporation Limited - Media: Paul Youens, +44(0)20-3159-4000,
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