Kentz Enters Deal To Acquire Valerus Field Solutions For $435 Million

To acquire Valerus Field Solutions expanding both companies operational footprints.

Valerus entered into an agreement with Kentz Corp. Ltd., the holding company of the Kentz engineering and construction group, for the proposed acquisition of Valerus Field Solutions for US$435 million in cash.

The proposed acquisition of the field solutions portion of Valerus includes the processing and treating, production equipment, compression and integrated services business lines. The remaining Valerus contract services and after-market service (AMS) business lines will be separated to form a stand-alone company, whose new name will be announced in 2014.

The proposed acquisition will potentially expand both companies' operational footprints, with Valerus well positioned in the U.S. and Latin America onshore oil and gas market, and Kentz well positioned in the Middle East, Africa and Asia Pacific.

Steve Gill, senior vice president of commercial for Valerus, will assume the role of CEO for Valerus Field Solutions under Kentz. Pete Lane, current CEO of Valerus, will continue in the role of CEO for the remaining company.

"We believe that the acquisition of Valerus Field Solutions will help to establish Kentz as a recognized market leader in providing highly-skilled process engineering, EPCM and EPC services for small and medium sized oil and gas processing facilities worldwide," Christian Brown, Kentz CEO, said in the release.

Valerus is a worldwide leader in integrated oil and gas handling and processing. The company is based in Houston. Kentz is a global engineering specialist solutions provider. The company is based in Clonmel, Ireland.