拢9.6m purchase allows firm to launch new Costain Upstream brand

Costain

Contractor Costain has acquired engineering firm EPC Offshore for 拢9.6m, a purchase which enables it to launch an oil and gas production and exploration services business.

EPC Offshore is a project management specialist providing advice to north Sea Oil clients since 2009, with turnover of 拢11.7m and earnings before tax and debt amortization of 拢2m.

In addition to the 拢9.6m purchase price, Costain has paid 拢1m for surplus cash in the company. Costain said the purchase would be earnings enhancing in the first year.

Costain will merge the firm with its existing Oil and Gas support services business Clerk Maxwell, bought in 2011, to form Costain Upstream, led by EPC Offshore chief executive Keith Wallace.

鈥楿pstream鈥� is the name given to the part of the petroleum industry devoted to the exploration and production of oil and gas.

Andrew Wyllie, CEO of Costain, said he was 鈥渄elighted鈥� with the purchase, and that it will 鈥渁ccelerate our stated strategy of broadening our range of capabilities in response to the requirements of major blue chip customers.

鈥淭he formation of Costain Upstream will significantly enhance our position in this sector, and the acquisition of EPC Offshore will boost its growth, complementing the front-end engineering and operations capabilities we acquired with ClerkMaxwell two years ago.鈥�

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