Lloyd's Register Sells Energy Business
Lloyd’s Register Group (LR) announced Wednesday that it has entered into a definitive agreement to sell its energy business unit to Inspirit Capital.
The agreement follows a comprehensive review of LR’s business portfolio and strategic direction, the company noted. LR added that the deal will create a new engineering and technical consultancy offering specialist asset performance, risk management and project management expertise across complex industrial assets, the energy transition and rail infrastructure.
The transaction is expected to complete on or before October 31 and is not subject to any formal regulatory or other approvals.
“As part of an ongoing strategic review of our business, we reached the decision that this transaction is the best option to realize the long-term growth potential of our energy business,” LR’s chief executive officer, Alastair Marsh, said in a company statement.
“LR Energy offers world-class engineering solutions across the sector and the partnership with Inspirit provides them with further support and investment to underpin their growth objectives,” he added.
“The LR group remains committed to the energy sector, continuing to support our clients through our offshore compliance, digital products and inspection services businesses, in collaboration with our former LR Energy colleagues where appropriate,” he continued.
David Clark, LR’s energy director and the leader of the new company, said, “this is an exciting new chapter for us, which supports our mission to help clients tackle complexity head-on”.
“This announcement provides us with a partner to build on our existing track record and unlock our growth potential as a standalone business, offering our full suite of technical, regulatory and operational expertise,” he added.
“Our purpose is to help clients manage risk and maximize performance, blending deep technical knowledge, data-driven insights with hands-on expertise,” he continued.
Will Stamp, the founding partner at Inspirit Capital, said, “LR’s energy division has an excellent reputation internationally and we are proud to be supporting the next phase in the development of the business”.
“We are backing a world-class team and look forward to building a valuable standalone organization in a market undergoing dramatic change,” he added.
LR describes itself as a global professional services organization specializing in engineering and technology solutions. LR’s energy business was founded in the 1930s following LR’s diversification from marine assets into the oil and gas industry. Since 2005, numerous strategic acquisitions - including Capstone, ODS, Human Engineering, Celerity3, ModuSpec, Scandpower and WEST Engineering - propelled the business, according to LR.
Inspirit describes itself as an investment firm that provides capital and expertise to drive transformation and growth in UK-headquartered businesses.
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