14th May 2007 10:00
INTERSERVE ACQUIRES FURTHER QATARI OPERATIONS
Interserve, the services, maintenance and building group, and its Qatari partner Al Darwish United Co WLL have agreed to acquire, for a cash consideration of ‚£18.5 million, the Madina group ("Madina"), a Qatari industrial services business. As is the case with its existing associate businesses in Qatar, Interserve's share of the company will be 49 per cent, representing an investment of ‚£9.1 million. The vendors are Mr Keith Harmer and his local co-shareholder.
Madina operates in two main fields: engineering fabrication and erection, and training. Its engineering activities focus on the design, fabrication and installation of pressure vessels, pipework, module construction and offshore equipment. This includes shot-blasting and painting capabilities and the provision of non-destructive testing and inspection services for the offshore and onshore oil, gas and petrochemical market. These high added-value, fabrication-shop-based activities complement the on-site and project-based nature of Interserve's existing Qatari operations.
In addition the company is the market leader in Qatar for the provision of recognised safety training across the fire, marine, health and safety, survival and offshore sectors, with its own extensive, world-class facilities including a helicopter ditching simulator.
Founded in 1997, Madina has annual revenue of approximately ‚£13 million, employs around 750 personnel and is one of the leading companies in its high-growth markets in Qatar, having established a high quality customer list including Maersk Oil Qatar, RasGas and Qatar Vinyl. The Qatari economy is forecast to grow by more than 30 per cent in real terms over the next four years at an annual rate of over 7 per cent*, with significant investment in liquefied natural gas and associated facilities anticipated to continue over an extended timescale.
Adrian Ringrose, Interserve Chief Executive, remarked, "The acquisition of Madina represents an exciting expansion of Interserve's overseas business. It is an excellent strategic fit, complementing our existing construction operations in Qatar and giving us greater access to this fast-growing market, in particular the petrochemical sector. Madina is a strong business with great opportunities for organic growth in its own right, and we expect further benefits by leveraging our existing expertise, relationships and activities in the region."
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* Source: Business Monitor International
For further information please contact:Tim Jones 0118 932 0123Group Finance DirectorNeil Bennett/Elizabeth Morley 020 7379 5151Maitland
About Interserve
Interserve Plc (www.interserve.com) is a services, maintenance and building group. It creates buildings and other structures for clients in the public and private sectors, maintains many different types of buildings, the operational systems that support them and a range of plant and equipment in specialist fields, and co-ordinates a host of background services to keep its clients' operations running smoothly and efficiently while they concentrate on their core business. Interserve is based in the UK and is a FTSE 250 company. It employs 26,000 people worldwide and has revenue of ‚£1.4 billion.
Interserve's principal Middle East operations
United Arab Emirates
Khansaheb Civil EngineeringActivities: Construction and civil engineeringInterserve ownersip: 45%Partner: Khansaheb InvestmentApprox. 2006 revenue: ‚£55 million (Interserve share)Example projects: Mall of the Emirates, Dubai Wafi Raffles Hotel, Dubai Dubai International Conference Centre Endurance City Desert RetreatRMD Kwikform Interserve ownership 100%Activities: Design, hire and sale of formwork and falsework - sophisticated engineering moulds and supporting structural members for the creation of concrete buildings, roadways, tunnels etc.Approx. 2006 revenue: ‚£15 millionExample projects: Dubai Mall Mall of the Emirates Dubai International Airport Burge Dubai Dubai Sports CityQatarGulf Housing and ConstructionActivities: Construction and civil engineering; high-quality prefabricated buildingsInterserve ownership 49%Partner: Al Darwish United Co.Approx. 2006 revenue: ‚£82 million (Interserve share)Example projects: Doha International Airport New Doha International Airport Electricity substations - over 40 throughout the country HSBC headquarters, Doha Doha Sheraton Hotel Conference CentreRMD Kwikform Interserve ownership 100%Activities: see entry in United Arab Emirates aboveApprox. 2006 revenue: ‚£5 millionExample projects: "The Pearl" land reclamation project & associated infrastructure Al Hamad Hospital Qatar UniversityOmanDouglas OHIActivities: Construction and civil engineeringInterserve ownership: 49%Partner: Oman Holdings InternationalApprox. 2006 revenue: ‚£14 million (Interserve share)Example projects: Sohar Industrial Complex - container terminals, desalination plant, power stations, plant & general buildings, medical centre, fire station, mosque Headquarters for General Telecommunications Organisation
Other Middle East locations where RMD Kwikform has branches
Country Approx. 2006 revenue Bahrain ‚£1.4m Oman ‚£0.7m Lebanon ‚£0.05m
INTERSERVE PLCRelated Shares:
Interserve