4th Sep 2007 13:33
LMS Capital PLC04 September 2007 4 September 2007 LMS Capital Plc Energy Cranes Acquisition of Marine & Mainland and update The Board of LMS Capital plc (the "Company") is pleased to announce that EnergyCranes International ("Energy Cranes"), the Aberdeen-based offshore craneengineering specialists in which LMS Capital is the majority shareholderalongside the management team, has bought the assets of Marine & Mainland CraneServices Inc. The transaction will double Energy Cranes' share of the US offshore craneservice market and create an enlarged business projecting 2008 revenues in theUS market exceeding US$86 million. The acquisition of Marine & Mainland adds 135people to Energy Cranes' US workforce and extends its service network withinTexas, Louisiana and throughout the Gulf of Mexico. The combined business willprovide opportunities to improve efficiency and develop increased resources tomeet market demands. This deal further strengthens Energy Cranes' position in the offshore servicesbusiness and it has made three other significant announcements in the lastmonth: the acquisitions of Aberdeen Hydraulic Services (AHS) and theintellectual property of the former Bucyrus Erie, as well as winning a contractwith Indian state oil producer Oil and Natural Gas Corporation Limited (ONGC). Annual revenues of Energy Cranes are currently running at $200 million and thesetransactions will have a significant positive impact on both revenues andprofitability. AHS, acquired in August, has been merged with the hydraulics division of EnergyCranes to form a specialist hydraulics engineering business, AberdeenHydraulics, which will provide design, manufacture, supply and refurbishmentservices for hydraulics systems. Energy Cranes has also acquired the intellectual property of the former BucyrusErie crane manufacturing company. There are believed to be some 250 largeBucyrus Erie cranes in offshore service, and this deal brings to well over 2,000the number of cranes worldwide for which Energy Cranes is the sole provider ofparts and support. Last month Energy Cranes won a multi-million dollar contract with Indian stateoil producer Oil and Natural Gas Corporation Limited (ONGC) for therefurbishment of twenty-two American Aero cranes located in ONGC's Mumbai HighAsset. John Jordan, Energy Cranes Chief Executive Officer, commented: "Energy Cranes has been demonstrating value and safety gains in crane service tooperators and vessel owners since our formation in 2003, while Marine &Mainland, led by Alan Schaefer and Tim O'Neill, has been growing as a similarlystrong player in this sector. Some consolidation in the marketplace is essentialif contractors are to continue to leverage these safety and performance benefitsto clients while developing the service network and skills base the marketdemands of us." LMS Capital's Chief Executive Officer, Robert Rayne said of recent progress: "We are delighted with the recent progress made by the management of EnergyCranes in developing the business both organically and with these acquisitions.This gives Energy Cranes more scale and breadth to support the global oil andgas industry through its offshore cranes and lifting services. The group, whichnow employs over 1,500 people, has a global presence and an unprecedented recordof safety and excellence." LMS Capital plc 020 7935 3555 Robert Rayne, Chief Executive Officer Martin Pexton, Managing Director Tony Sweet, Chief Financial Officer Arbuthnot Securities Limited 020 7012 2000 Alastair Moreton Brunswick Group LLP 020 7404 5959 Simon Sporborg Anisha Patel About LMS Capital LMS Capital plc is an independent investment company whose shares are traded onAIM. The investment portfolio comprises investments in both the US and UK, witha spread of early stage and second round technology investments, developmentcapital and mature company buy-outs. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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