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."
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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.
NR
-
Why undersea cables are under threat – and how to protect themUndersea cables power the internet and are vital to modern economies. They are now vulnerable
-
Vanguard to bring in £4 minimum monthly fee - is it still a cheap deal?Vanguard is overhauling its charges, with DIY investors set to pay more from January. How will the fees compare to its rivals, and what should customers do?
