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 buyout will be funded from Cape’s existing debt facilities and is expected to be earnings enhancing in the current financial year.
Commenting on the deal, Cape chief executive Joe Oatley: “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’s overseas growth through Cape’s international footprint.”
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.”
Clayton Walker Gasholders, the gas division of Motherwell Bridge, is based at Wakefield 41 Industrial Park close to the M1 junction.