PORTLAND, Ore., March 18, 2014 /PRNewswire/ -- Professional
infrastructure & environmental services consultancy Cardno
today announced its largest acquisition to date with the purchase
of the PPI Group of companies (PPI) headquartered in Houston, Texas for US$145 million.
PPI provides specialist engineering services to the oil and gas
sector in the United States,
West Africa and Asia Pacific and employs 760 staff. PPI
generated annual revenue of US$133
million and EBITDA of US$21.5
million in the year ended 31 December
2013.
Cardno CEO, Michael Renshaw said
the acquisition of PPI is in line with the firm's strategy of
expansion in attractive growth markets such as
energy.
"This acquisition will strengthen Cardno's ability to service
the expanding oil and gas sector in the
United States and in key emerging markets," Mr. Renshaw
said.
He said PPI's engineering services to the midstream and upstream
oil and gas sector will complement Cardno's existing environmental
and permitting capabilities in this market. He also commented
that PPI provides Cardno with new capabilities and proprietary
systems in asset and quality management which has application in
other asset intensive industries.
"While concentrated on the oil and gas market, PPI is
diversified in terms of services offered and in geographic markets
served. In addition to the primary markets of the United States and Nigeria, PPI is currently delivering projects
in Australia, Singapore, South
Korea, Japan, Malaysia and Angola," Mr. Renshaw said.
Integral to PPI's significant growth history and reputation has
been their ability to maintain long-term relationships with the
major multi-national and national oil and gas clients such as five
of the oil majors, BHP Billiton, Cobalt and Noble Energy.
Mr. Renshaw said: "The complementary and overlapping client base
of Cardno and PPI presents strong potential for cross-selling
across the United States,
Latin America, Africa and Asia
Pacific."
"Oil, gas and energy clients will now account for around 25% of
Cardno's annual revenue. We believe this market presents solid
opportunities for organic growth," he said.
The acquisition aligns with Cardno's strategy of market and
service diversification and creates a range of organic growth
opportunities through:
- Deepening Cardno's capabilities to support upstream and
midstream oil and gas sector growth
- Experienced leadership bringing new and mutual relationships
with multi-national and national oil and gas companies
- Building on a combined successful track record across
Africa and complementary expansion
plans for emerging economies in addition to Australia and the US
- Providing a platform to expand PPI's services across other
asset intensive sectors and clients
Key acquisition risks are mitigated by Cardno's robust due
diligence and integration process.
"Plans and incentives are in place to ensure PPI's key
management will remain active in the company, which will be known
as Cardno PPI," Mr. Renshaw said.
PPI President Randy Sullivan said
the global reach and broader service lines offered by Cardno would
be well received by their clients.
"Our staff are excited to join Cardno. There is a strong
cultural alignment between the two firms, a fierce commitment to
safety and a track record in delivering projects in both developed
and emerging markets," Mr Sullivan said.
For further information:
Paul Gardiner, President, Americas
Region, Cardno +1 (503) 734-1801
Michael Renshaw, Chief Executive
Officer, Cardno +617 3369 9822 or +61 448 091 267
Graham Yerbury, Chief Financial
Officer, Cardno +617 3369 9822 or +61 450 324 613
Randy Sullivan, President, PPI Group
+1 (713) 464-2200
About Cardno: Cardno is an ASX200 professional infrastructure
and environmental services company, with specialist expertise in
the development and improvement of physical and social
infrastructure for communities around the world. Cardno's team
includes leading professionals who plan, design, manage and deliver
sustainable projects and community programs. Cardno is an
international company, listed on the Australian Securities Exchange
[ASX: CDD]. www.cardno.com
About PPI Group: PPI is a multi-discipline engineering group
headquartered in Houston, Texas.
PPI offers total project management services including initial
scoping, field development planning, front end engineering and
design (FEED), detailed engineering and design, drilling and
construction project management, field operations, procurement and
Quality Assurance. With expertise in all facets of drilling,
production and construction operations. www.ppitech.net
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SOURCE Cardno USA