Costain acquires Promanex

22nd Aug 2011 07:05

Engineering solutions provider Costain, has acquired 100% of the issued share capital of Promanex, an industrial support services business, for a consideration of £16.4m. The acquisition, which comes with a normalised net debt of £2.4m, will be funded from the company's existing cash resources. Promanex's client base consists largely of such major blue chip customers as EDF, E.ON, Scottish and Southern Energy, Siemens and Total.Around 75% of Promanex's revenues are generated from long term contracts and the business has a robust order book and strong pipeline of opportunities.For the year ended 30 September 2010, Promanex reported revenue of £56.2m and operating profit of £1.8m. Gross assets as at 30 September 2010 were £20.8 m. "The acquisition is expected to be earnings enhancing (before amortisation and exceptional costs) in the year ending 31 December 2011 and thereafter," Costain said. Andrew Wyllie, Chief Executive of Costain, said: "The acquisition will significantly enhance our existing ability to provide operations and maintenance support services to our major customers and reinforces Costain's position as a leading Tier One engineering solutions provider."NR