International oil and gas support services giant Cape plc has taken over Motherwell Bridge in a deal largely-driven by its desire to acquire the Lanarkshire-based company’s pedigree and performance in providing storage tanks, gas-holders and heat-exchangers to the energy and steel markets.
The total paid for the deal amounts to £37.65 million on a cash-free, debt-free basis, comprising of an initial cash consideration of £34 million, debt of £0.9 million, deferred consideration of £1.25 million contingent on a key contract win and up to £1.5 million related to future performance.
The acquisition will be funded from Cape’s existing debt facilities and is expected to be earnings-enhancing in the current financial year ending 31 December 2014.
Motherwell Bridge, headquartered Scotland, is recognised internationally as a leader in the specialist storage tank market. The business has an excellent global brand reputation and has historically delivered a significant number of storage tanks around the world.
Motherwell Bridge, which employs some 300 people and generated revenue of £34.5m last year, has a strong management team – all of whom will remain with the company.
In the year ended 31 December 2012, FTSE-listed Cape plc reported adjusted revenues of £749 million. It employs more than 21,000 people around the world.
Joe Oatley, Chief Executive, Cape plc, explained: “Motherwell Bridge is a ‘whole of life’ supplier and offers a complete range of services across all markets including design, engineering, maintenance, construction and full project management.
“With more than 100 years experience both internationally and in the UK, offshore and onshore, the company’s project portfolio includes some of the most prestigious and innovative projects in the world – including some of the world’s largest built storage tanks.
“Motherwell Bridge has tremendous expertise, reputation and brand recognition in the oil and gas storage tank market, including a market leading position in the UK and we expect to accelerate Motherwell Bridge overseas growth through Cape’s international footprint.”
Motherwell Bridge chief executive Russell Ward – who is remaining in post – said: “While the business has achieved good growth over the past few years, Cape’s significant resources and footprint will help accelerate and realise our growth plans in the UK and overseas.
“There is no doubt that having the backing of a leading industry player in the form of Cape will signal a major transformation of Motherwell Bridge.”