Interserve to buy Middle-Eastern unit of Willbros

Support services and construction group Interserve is to expand its operational footprint in the oil and gas services market with the acquisition of a majority stake in Willbros Middle East.

Support services and construction group Interserve is to expand its operational footprint in the oil and gas services market with the acquisition of a majority stake in Willbros Middle East.

Interserve is spend $41.3m on an 85% interest in Willbros Middle East and its subsidiaries, which provides oil field maintenance, construction and logistics services. The group highlighted the foremost division, The Oman Construction Company (TOCO).

The other 15% of the company will be owned by Interserve's Omani partner.

Willbros Middle East is to be bought from Willbros International Finance and Equipment, part of the US-listed oil and gas services giant Willbros Group Inc.

The group said that the acquisition expands its service offering in Oman, "a key growth market offering c. US$2.5bn of oil, gas and power contracts per annum".

The gross assets of the subsidiaries being acquired are $31m, including cash of around $4m. Pre-tax profits for Willbros Middle East and its subsidiaries totalled $6m in the 10 months to the end of October 2012.

"Interserve sees the Middle East oil and gas sector as a key growth market and this acquisition further develops our presence in the region," said Chief Executive Officer Adrian Ringrose.

"As part of Interserve, we believe TOCO's growth will be accelerated through innovation, enhanced business development and a number of operational efficiencies."

Interserve shares gained 0.87% to 395.4p in early trading on Monday.

Recommended

Persimmon yields 12.3%, but can you trust the company to deliver?
Share tips

Persimmon yields 12.3%, but can you trust the company to deliver?

With a dividend yield of 12.3%, Persimmon looks like a highly attractive prospect for income investors. But that sort of yield can also indicate compa…
1 Jul 2022
Don’t try to time the bottom – start buying good companies now
Investment strategy

Don’t try to time the bottom – start buying good companies now

Markets are having a rough time, so you may be tempted to wait to try to call the bottom and pick up some bargains. But that would be a mistake, says …
1 Jul 2022
Share tips of the week – 1 July
Share tips

Share tips of the week – 1 July

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
1 Jul 2022
Bunzl: boring is good for business
Share tips

Bunzl: boring is good for business

Food-service distribution company Bunzl is not a terribly exciting business, but it looks cheap and could be a great investment, says Rupert Hargreave…
30 Jun 2022

Most Popular

UK house prices are definitely cooling off – but are they heading for a fall?
House prices

UK house prices are definitely cooling off – but are they heading for a fall?

UK house prices hit a fresh high in June, but as interest rates start to rise, the market is cooling John Stepek assesses just how much of an effect h…
30 Jun 2022
How to invest in copper, the most important metal in the world
Industrial metals

How to invest in copper, the most important metal in the world

As the world looks to electrify and try to move away from fossil fuels, copper looks set to be the biggest beneficiary. But how can you invest? Rupert…
30 Jun 2022
Don’t try to time the bottom – start buying good companies now
Investment strategy

Don’t try to time the bottom – start buying good companies now

Markets are having a rough time, so you may be tempted to wait to try to call the bottom and pick up some bargains. But that would be a mistake, says …
1 Jul 2022