Oil Patch Bits: Fluor agrees to acquire Stork Holding B.V.
Fluor Corp. and Stork announced that Fluor has signed an agreement with UK-based private equity firm Arle Capital Partners to acquire 100 percent of Stork Holding B.V., based in the Netherlands, for an investment of approximately $755 million.
Stork is a global provider of maintenance, modification and asset integrity services associated with large existing industrial facilities in the oil and gas, chemicals, petrochemicals, industrial and power markets. Founded in 1827, Stork has built a powerful brand in the industry and has long-term relationships with a diverse range of blue chip customers. It has operations in Continental Europe, the United Kingdom, the Middle East, Asia Pacific and the Americas, with an annualized run-rate revenue of approximately $1.7 billion and EBITDA of approximately $109 million, implying a transaction multiple of just under seven times EBITDA.
Upon closing of the acquisition, Fluor will begin combining Fluor’s operations and maintenance organization with Stork. Current Stork CEO, Arnold Steenbakker, will lead the combined group and report directly to Fluor’s CEO, David Seaton. The management team will be formed by Stork’s existing management combined with the managers of Fluor’s operations and maintenance business. The combined group, branded Stork and headquartered in the Netherlands, will have an annual turnover of approximately $2.3 billion and a total of approximately 19,000 employees.
The acquisition is expected to be accretive to Fluor’s earnings per share in 2016. Fluor expects to achieve significant synergies including increased revenues from cross-selling and expansion into new markets.
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