Promanex acquired in £16m deal by Costain

ENGINEERING solutions provider Costain has acquired Warwickshire industrial support services firm Promanex in a deal worth £16.4m.

The consideration for the acquisition, together with management retention payments, is £16.4m with Maidenhead-based Costain also taking on normalised net debt of £2.4m, which is being funded from the group’s existing cash resources.

Based in Atherstone, Promanex operates across the UK and Ireland with a workforce of over 800 and a client base including Conoco Phillips, EDF, E.ON and Scottish and Southern Energy.

The business provides a range of services in the management, operation, maintenance and repair of customers’ sites and plant assets.

For the year ended September 30, 2010, Promanex reported revenue of £56.2m, EBITDA of £2.4m and operating profit of £1.8m, with gross assets of £20.8m.

Costain, advised by Pinsent Masons, said the acquisition was expected to be earnings enhancing, before amortisation and exceptional costs, in the year ending December 31, 2011, and thereafter.

Promanex, which was advised by the Birmingham offices of Deloitte and Eversheds, will be integrated into the firm’s infrastructure division and the existing management team will remain with the business.

Costain said the acquisition broadened the group’s capabilities in ongoing care and maintenance, and strengthened its presence in key growth target markets such as power, nuclear and water.

Chief executive Andrew Wyllie said: “We are delighted to have completed the acquisition of Promanex, which represents a further important step in the implementation of our strategy of broadening our existing front-end consultancy and care and maintenance operations.”