Engineering giant Kentz considers sale

Clonmel-founded company has received approaches from potential buyers

Kentz Executive director Christian Brown. The company has received approaches from companies including Amec Plc, a UK engineering firm for energy projects, sources said.

Kentz Executive director Christian Brown. The company has received approaches from companies including Amec Plc, a UK engineering firm for energy projects, sources said.

 

Global engineering group Kentz is considering a sale after receiving interest from potential buyers, according to industry insiders.

Kentz received approaches from companies including Amec Plc, a UK engineering firm for energy projects, sources said. SNC-Lavalin Group, Canada’s largest engineering company, has also shown interest. MandW Group of Germany is also a contender, according to reports.

The company, which provides engineering, construction and technical support services to the oil and gas, mining, nuclear and renewable energy sectors and was formed in Clonmel, Co Tipperary, in 1919, has gained 23 per cent to 475.90 pence a share in London trading so far this year, valuing the company at £561 million (€657.7 million).

Share rise

The company’s shares have risen to the highest level since April 2012, helped by winning contracts in southern Africa.

Amec, which also provides engineering services to the oil and gas and mining industries, has a market value of £3.22 billion. The company has “ample opportunity” to make acquisitions, chief executive Samir Brikho said earlier this month.

SNC-Lavalin, which is based in Montreal, earlier this month cut its annual profit forecast and posted a surprise quarterly loss, hurt by fixed-price projects in North Africa.

M&W is a German engineering and construction company based in Stuttgart that is owned by Austria’s Stumpf Group.

In an interview in July, Kentz chief executive Christian Brown said the firm was looking for engineering acquisitions itself.

- (Bloomberg/Reuters)