Cape acquires tank storage specialist

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INDUSTRIAL services group Cape has acquired Motherwell Bridge, a provider of storage tanks, gasholders and heat exchangers to the energy and steel markets.

The total consideration for the acquisition amounts to £37.65m. The acquisition will be funded from Cape’s existing debt facilities and is expected to be earnings enhancing in the current financial year.

Commenting on the acquisition, Joe Oatley, the chief executive of Cape, said: “The acquisition of Motherwell Bridge is in line with Cape’s strategy to broaden our portfolio of critical industrial services.

“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. By combining the strengths of Cape and Motherwell Bridge we are uniquely able to provide a complete tank maintenance solution to clients in the oil and gas market.”

Partner Christian Mayo and director Giles Taylor from KPMG’s corporate finance team in Leeds advised management at Motherwell Bridge and Kuwait Finance House on the transaction.

Mr Taylor said: “Engineering firms that have ‘cut their teeth’ in the oil and gas markets continue to attract significant interest from the international energy community and Motherwell Bridge is no exception. The deal is illustrative of the ongoing consolidation in the global oil and gas industry as major players look to broaden their portfolio to capitalise on growing demand for specialist engineering products and services.”

Clayton Walker Gasholders, the gas division of Motherwell Bridge, is based in Wakefield, West Yorkshire.