Global alternative asset manager The Carlyle Group has agreed to acquire EnerMech Group Ltd, an international services company providing critical asset support to the energy, infrastructure and industrials sectors, from Lime Rock Partners. The transaction is expected to close in Q4 2018, subject to customary anti-trust and regulatory approvals.
EnerMech provides a range of mechanical, electrical and instrumentation services to the global energy and infrastructure industries. With operations in Australia, the Americas, Europe, Middle East, Caspian, Africa and Asia, the business provides innovative integrated solutions that maximise efficiencies across multiple phases of the asset lifecycle from pre-commissioning, commissioning, maintenance and operations support, through to late life support.
EnerMech had 2017 revenues of $475mn and profits (EBITDA) of $57mn, and forecast that 2018 revenues are expected to reach $566mn with profits in the region of $77mn.
"...With the backing of Carlyle Group, which enjoys extensive relationships in the upstream and downstream sectors, we will be focussed on doubling the size of the business in the next five years," said EnerMech CEO Doug Duguid.
Equity for this investment will come from Carlyle International Energy Partners (CIEP), a $2.5 billion fund that invests in the global oil and gas sector outside North America. The Fund’s mandate includes exploration & production, mid-stream, downstream and oil field services. Credit Suisse, Lloyds and DNB have underwritten the all-senior rated loan financing the acquisition.
“EnerMech is an attractive, well-positioned international integrated energy, infrastructure and industrial services company, led by a strong team," said Head of Carlyle International Energy Partners Marcel van Poecke. "The company has multiple avenues for growth. We believe potential synergies across CIEP’s portfolio companies as well as the broader Carlyle family are attractive. We look forward to working with the team and supporting EnerMech’s continued growth.”