Engineering group plans US expansion with £15m acquisition

Carlisle food and engineering group Carr’s has bought a US engineering business for up to £15.4m in a move it says will open up the US nuclear market to the business.

It has acquired the holding company of Pennsylvania-based NuVision Engineering Inc for an initial £8.8m, with up to 15.4m payable in total, depending on future financial performance.

The initial consideration will be financed through a combination of new and existing debt facilities, and the contingent consideration will be financed from NuVision’s future retained earnings.

NuVision, founded in 1971, has operations in Charlotte, North Carolina, along with its Pittsburgh headquarters. It had a turnover of £6.7m and a pre-tax profit of around £150,000 for the year to the end of March 2017.

The technology and applications engineering company focusses oncommercial nuclear and power plant facilities, government waste remediation facilities and waste clean-up. Its customers include the US Department of Energy, nuclear energy suppliers, public utilities, and international governments.

NuVision is also a 49% minority shareholder in Mid Columbia Engineering Inc , an engineering company based in Richland, Washington and local to the Hanford Site nuclear complex.

Carr’s said that the acquisition will provide a strong foothold into the main nuclear markets in the US and also extend the group’s service capability in the nuclear market.

There will also be revenue synergies with the group’s existing nuclear engineering businesses, including the opportunity to market its products in the US, it said.

Tim Davies, chief executive of Carr’s, said: “This acquisition lays the foundations for growth into the USA and wider international nuclear markets and provides us with access to specialised IP and a strong pipeline of long term contract opportunities.

“Additionally, this presents a significant opportunity for us to expand our existing remote handling operations into the USA market.”

“The management team at NuVision have created long lasting and sustained relationships with a number of major nuclear customers and we look forward to building on this and continuing to invest in the business and the team.”

Van Walker, president and chief executive of NuVision, said: “The acquisition will enable the two companies to work seamlessly in providing value adding engineering services to the USA and wider global nuclear markets.”