Willbros to Acquire Canadian Pipeline Contractor from AMEC
One of Willbros Group, Inc.'s subsidiaries has entered into a Share Purchase Agreement with AMEC to acquire all of the shares of Midwest Management (1987) Limited ("Midwest"), a Canadian pipeline and facilities construction company, for approximately $17.5 million (C$18.5 million), plus working capital of approximately $3.3 million (C$3.5 million).
Midwest, together with its wholly owned subsidiaries, Midwest Pipeline Rental Inc. and Midwest General Contractors Ltd., offers a complete range of services, including cross country pipeline construction, rehabilitation and maintenance, water crossings installation and replacement, and facilities fabrication. Closing of this transaction, which is subject to regulatory approval pursuant to the Competition Act (Canada) and other typical closing conditions, is expected to take place in the late second quarter or early third quarter of 2007.
Randy Harl, President and Chief Executive Officer of Willbros, commented: "This acquisition provides substantial opportunities for Willbros to participate in large diameter pipeline projects related to the development of the Canadian oil sands and natural gas reserves expected during the next several years. The additional capabilities of a mainline pipeline construction entity in Canada will complement Willbros' traditional Canadian activities, which include providing maintenance, capital projects and modular fabrication services to the oil sands developments. With the addition of Midwest, we will now have in Canada a cross-country pipeline construction company with experience, systems, equipment and corporate identity bolstered by the global resume of Willbros. The resultant organization can offer pipeline construction and project logistics experience unmatched by any competitor in Canada."
Willbros Group, Inc. is an independent contractor serving the oil, gas and power industries, providing engineering and construction services to industry and government entities worldwide.
AMEC is an international project management and services company that designs, delivers and supports client assets for customers across the public and private sectors. AMEC employs more than 20,000 people working from a network of offices throughout the U.K., U.S. and Canada, as well as regional offices and projects worldwide.
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