Alec Engineering & Contracting, a part of the Investment Corporation of Dubai (ICD), has signed a share purchase agreement to acquire UAE-based Target Engineering Construction Company as it seeks to enter the oil and gas sector.
Elec Engineering said on Tuesday that with this agreement, the companies will have a combined turnover of approximately $2 billion.
“This acquisition further enhances Elec’s position in the regional construction industry, as well as ushering it into its strategy to become a major player in the Middle East’s oil and gas, and energy and renewables sectors by drawing on extensive expertise and resources.” and enables faster tracking. That target engineering has evolved,” said Khalifa Al Dubous, Deputy Chief Executive of ICD.
“For the Investment Corporation of Dubai, this move enables us to align strongly with the UAE government’s ongoing investment in developing world-class critical infrastructure that supports its ambition to be an advanced, sustainable economy. Is.”
Target was established in 1975 and operates through four specialized divisions including mechanical oil and gas, electrical, civil and marine units, its website says.
The company’s client base includes oil and gas companies, leading EPC (engineering, procurement and construction) contractors, government entities and property developers.
Its completed projects include Enec’s Barakah Nuclear Power Plant, Adnoc Gas Processing’s Ruwais LNG Terminal, Saudi Aramco’s Abqaiq Plant, and Enoc’s Jebel Ali Refinery Expansion.
Current active projects include Borouge 4 and Delma B in a joint venture with Adnoc.
By acquiring 100 percent of the company, Alec will boost its resources with significant assets held by Target, including its 11,000-strong workforce, more than 30 oceangoing vessels and 52,000 square meters of manufacturing facilities.
Additionally, it includes Target’s controlling stake in Idrotec SRL, an Italian marine and coastal engineering company specializing in marine, hydraulic and environmental design for the oil and gas sector and marine development.
The acquiring company said Target will continue to operate as an independent entity, drawing on the skills and resources of the wider Elec Group.
Alec continues to leverage its capabilities to “enter new market segments and become a market leader,” said Kez Taylor, chief executive of Alec Engineering.
“Bringing Targeted Engineering into our fold is a move that plays to both of these objectives as their specialist skills in oil, gas, energy – including renewables, marine and industrial construction – perfectly enhance Alec’s own capabilities. This will enable us to present an even stronger combined value proposition to customers,” he added.
Lakshya Engineering will benefit from Alec’s “strong financial position” and “project execution capabilities,” said Chauk Yasin, Lakshya’s chief executive.
“This will give a boost to our ambitious growth plans in the Middle East as we can now… provide EPC and specialist marine services to a wider segment of high-profile regional entities,” said Mr. Yassin.
Updated: December 20, 2022, 9:29 am