#woodgroup Expands U.S. #downstream Footprint With $150mn Buy Of Infinity Group #ma #finance

By 3rd December 2015 Industry News No Comments

UK-based Wood Group announced Thursday it will acquire The Infinity Group, a Texas Gulf Coast industrial construction and maintenance contractor serving the downstream sector. The $150 million acquisition will allow Wood Group “an excellent platform” to grow its downstream presence from the Texas Gulf Coast into neighboring U.S. markets.

What Wood Group Gains

Infinity was established in 1952 and is now headquartered in Clute, Texas. The company has six additional locations along the Texas Gulf Coast.

Among the services Infinity provides are mechanical construction, fabrication, project management, turnarounds, maintenance services, heavy civil works, site preparation, and electrical and instrumentation services.

Wood Group said Infinity’s current management team will continue to lead the business, which has an approximate 2,500 headcount. Infinity now has gross assets of around $92 million and is projected to generate EBITA of $26 million this year.

Facilitating Downstream Expansion

Infinity will operate within the Wood Group PSN Americas business unit. This will create a brownfield service offering to the downstream market that complements the existing services of Wood Group PSN Australia Asia Pacific within the refining, chemicals and LNG sectors.

Wood Group PSN’s CEO Dave Stewart

In collaboration with Wood Group Mustang, the acquisition also provides an opportunity to offer a turnkey design and construct industrial service offering.

The acquisition is subject to a number of conditions, including US anti-trust approval, and completion is expected by the end of 2015.

Management Commentary

Dave Stewart, Wood Group PSN CEO, said, “The addition of The Infinity Group gives Wood Group PSN service line expansion, sector diversification, and entry into the US petrochemical and other downstream sectors, coupled with access to new clientele. Their 60-year history is a testament to the relationships they have built that we look forward to continuing and growing.”

Harold Monical, Jr., president of Infinity Construction Services, said, “Joining Wood Group allows us to expand our service offering to their diverse customer base and gives us exposure to larger scale projects while also continuing to serve our current market and clients.”