Kentz Corporation, the holding company of the Kentz Engineering and Construction Group, is pleased to announce that it has acquired RNE Engineering and Projects (RNE), a leading supplier of engineering services, from its founders and other shareholders for a total cash consideration of approximately South African Rand 73 million (approximately US$10 million) over a period of four years.
RNE undertakes project management, engineering and design services including process, mechanical, piping, civil and structural engineering for oil, gas and petrochemical process plants. It is involved in both capital expenditure projects and asset enhancement production services and has approximately 85 employees based in two offices in Secunda and Sasolburg, South Africa.
The company said that RNE has a successful track record as a leading supplier to Sasol and has worked with Kentz in South Africa for over three years. The partnership will support the growth of activity in South Africa as well as the opportunity to jointly tender for select Engineering, Procurement and Construction (EPC) contracts.
The acquisition is aligned with Kentz’s stated strategy of growth through smaller, value enhancing opportunities to supplement its existing capabilities across the global footprint of the Group. The acquisition will be earnings enhancing in the first full year of ownership.
Hugh O’Donnell, chief executive officer, of Kentz Group commented: “RNE has built an impressive market presence in the oil, gas, petrochemicals, metals and mining market sectors in South Africa. By bringing the experience of RNE together with Kentz’s presence in a broader number of sectors we are now well positioned to offer an expanded range of niche EPC solutions to a wider client base throughout Southern Africa.
“Our business is about people and we have a found a strong cultural fit with the RNE senior management team. We share the same values in delivering world class projects safely for our clients.”
Kentz wins $30 million safety shutdown system EPC from GASCO
Late in January Kentz Engineering and Construction Group, through its operating unit UTS Kent LLC announced the award of an Engineering, Procurement and Construction (EPC) contract worth in excess of $30 million by Abu Dhabi Gas Industries (GASCO).
Kentz’s scope of work is to replace the existing emergency shutdown (ESD) system and associated field instrumentation at Habshan 0 and Habshan 1 plants. The works will be completed throughout two major shutdowns scheduled in 2011 and 2012. The total duration of the project is approximately 30 months, starting from January 2011.
Kentz has been operating in Abu Dhabi for almost 30 years and has worked with GASCO on other projects including Ruwais Distributed Control System (DCS) Upgrade, Thamamma “C” Instrumentation and Control (I&C) System Upgrade and more recently Habshan 3 Electrical, Instrumentation and Telecommunications (E&IT) construction.
On the occasion of the contract win, O’Donnell commented: “Kentz is delighted to have been awarded this exciting new EPC project in Abu Dhabi. The nature and criticality of this brownfield project has traditionally been a core competency of Kentz and we look forward to completing another successful project with GASCO.”
