Fluor Corporation to Acquire 100% of Stork Holding B.V.
Fluor Corporation, an integrated global engineering firm involved in complex oil and gas projects, has agreed to acquire 100 percent of Stork Holding B.V, a Netherlands-based asset integrity services company focusing on the oil and gas industry, for €695 million ($755 million).
Upon closing of the acquisition, which is expected in the first half of 2016 subject to regulatory approvals and consultation procedures with Stork’s work council, Fluor will begin combining its Operations & Maintenance organization with Stork. Stork’s CEO, Arnold Steenbakker, will lead the combined group and report directly to Fluor’s CEO, David Seaton. The management team will be formed by Stork’s existing management combined with the managers of Fluor’s Operations & Maintenance business.
The combined group, branded Stork and headquartered in the Netherlands, will have an annual turnover of approximately €2.1 billion ($2.3 billion) and a total of around 19,000 employees. This acquisition is expected to be accretive to Fluor’s earnings per share in 2016, according to a company statement, and the company intends to finance the cash required for the transaction through the “issuance of debt in international markets”. Analysts at Tudor, Pickering, Holt & Co stated that the price paid by Fluor “appears reasonable” and indicated that Stork’s “relatively stable” revenue base is “attractive” and “compliments” Fluor’s existing O&M business.
Commenting on the deal, Fluor’s Chairman and CEO, David Seaton, said in a company statement:
“The acquisition of Stork is consistent with Fluor’s goal to further enhance our integrated solutions capabilities in thoughtful, strategic ways that will increase the value we deliver to our clients and shareholders. We are pleased to welcome Stork’s talented workforce of more than 15,000 employees, which will provide us with additional flexibility and capacity to increase our maintenance and direct construction activities. Stork is highly complementary to Fluor as it gives both businesses the opportunity to market diverse services and capabilities to new customers and across new geographies."
Stork CEO Arnold Steenbakker said in a Stork statement:
“We are very proud that a world-class company like Fluor recognizes Stork’s strong reputation, capable workforce and performance as a global industrial services provider. The combination will create new opportunities to expand our global footprint and deepen the product and services offering to our customers. Stork’s activities are complementary to those of Fluor and the combination will create a global leader in the industrial services business.”
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