Irish engineering group Kentz has announced the acquisition of South African engineering services firm RNE Engineering and Projects for €7.4 million (R73 million).
Kentz said the deal will enable the group to offer a wider range of niche engineering, procurement and construction solutions in southern Africa, as well as supporting the opportunity to jointly tender for certain EPC contracts.
RNE offers project management, engineering and design services including process, mechanical, piping, civil and structural engineering for oil, gas and petrochemical process plants. The company has around 85 employees based in two offices in Secunda and Sasolburg, South Africa. The company is a leading supplier to Sasol and has already worked with Kentz in South Africa for over three years.
The acquisition will deliver earnings enhancement within the first full year of ownership, Kentz said.
Commenting on the deal, Kentz’s chief executive officer Hugh O'Donnell said: "RNE has built an impressive market presence in the oil, gas, petrochemicals, metals and mining market sectors in South Africa. By bringing the experience of RNE together with Kentz's presence in a broader number of sectors we are now well positioned to offer an expanded range of niche EPC solutions to a wider client base throughout Southern Africa.”
He continued: "Our business is about people and we have a found a strong cultural fit with the RNE senior management team. We share the same values in delivering world class projects safely for our clients."
Clonmel, Ireland-based Kentz has over 10,000 employees and offices in 27 countries. It provides specialist service solutions to clients in the oil and gas, petrochemicals and metals and mining sectors.
RNE Engineering and Projects also provides specialist engineering solutions to clients in the oil and gas, petrochemicals, mining and metals sectors.
