Global equipment services business is sold off
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Interserve Group has sold RMD Kwikform (RMDK), its global equipment services business to the Altrad Group, which has nine subsidiaries in the Yorkshire and Humber region.
The sale of RMDK is part of the planned restructuring of the construction group, which has also seen the sale of businesses including Interserve Healthcare to City & County Healthcare Group and Interserve Support Services to Mitie Group plc in 2020.
RMDK provides specialist engineering solutions needed to deliver major infrastructure and building projects.
It is headquartered in the West Midlands and employs over 1,300 people around the world including in its core markets of the UK, India, Australia and the UAE.
Altrad Group was founded in 1985 and has revenues of around €3bn/£2.5bn. The group has subsidiaries based in Leeds, York, Wakefield, Rotherham, Doncaster and North Lincolnshire.
It is a major industrial services company focusing on Oil and Gas, Energy, Process, Environmental and Construction sectors. Altrad is headquartered in France and employs around 38,000 people.
Alan Lovell, chairman of Interserve Group, said: “The sale of RMDK to Altrad Group continues the significant progress we have made selling the constituent parts of Interserve Group to best realise value for our shareholders.
“I have no doubt RMDK will thrive as part of Altrad Group which will benefit both its staff and clients alike.
“I would like to thank all the team at RMDK for their outstanding contribution to the Group and wish them well for the future.”
Ian Hayes, chief executive officer of RMDK, said: “We are delighted to be joining Altrad Group. RMDK will provide complementary engineering services across Altrad’s global markets enhancing services and value to its clients.
“Over the past 18 months despite the challenges of Covid-19 impacting global construction markets, RMDK has shown great resilience in widening our offer by launching new products into key markets such as the commercial building sector.
“Altrad Group will support RMDK’s growth strategy built on further investment into our products, services and geographic expansion, widening the platform for the renowned world-class engineering solutions we provide to our clients.
“Importantly, it will also lead to significant opportunities for our staff as part of a leading global industrial services group.”
Ran Oren, joint chief executive of Altrad Group, added: “We are so excited to welcome RMDK to the Altrad family.
“We have watched and admired RMDK’s specialist engineering skills and services for many years and strongly believe in its brand, client solutions and ability to return to growth.
“RMDK will enhance our portfolio of products, in line with our strategy of the geographic, sector and product diversification.
“Altrad is well-financed with a strong balance sheet and the unwavering support of its stakeholders. We are able to provide investment to fuel the further growth of RMDK as part of a leading industrial group.”
Lazard is acting as sole financial advisor to Interserve Group Limited. Giles Taylor, partner in KPMG’s Corporate Finance team, acted as the advisor to Altrad Group.