Babcock International Group, the FTSE 100 engineering support services company, has acquired LGE Process, which designs and builds plants for the processing, storage and handling of liquid gases, from index peer Weir Group.
LGE, which has been acquired for £23m, will be integrated into Babcock's Design Services (DS) business unit, within the Marine and Technology division, creating a medium-sized, specialist energy and marine technology business delivering a wider offering including the design and installation of mechanical, electrical and chemical process equipment for ships, oil and gas platforms and onshore support facilities.
Peter Rogers, Chief Executive of Babcock, said: "The acquisition of LGE and its combination with our existing expertise in Design Services will create a strong business, well positioned to build on its current positions and develop into new commercial marine markets, particularly within the oil and gas market."
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In the year ended December 30th 2011, LGE delivered gross revenue of £26.3m and operating profits of £3.0m.
Weir also reported the completion of its previously announced acquisition of Mathena, Inc.
Babcocks's share price rose 1.24% to 977.50p, while shares in Weir climbed 2.18% to 1,920p. by 09:00.
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