Fluor acquire Stork Holding
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Fluor to acquire Stork Holding

7:16 AM, 8th December 2015
Fluor to acquire Stork Holding
David Seaton, chairman and CEO, Fluor Corporation. (File photo)

IRVING, US: Fluor Corporation said that it has signed an agreement with UK-based private equity firm Arle Capital Partners to acquire 100 percent of Stork Holding BV, based in the Netherlands, for an investment of €695 million ($755 million).

The acquisition is expected to close in the first half of 2016. Fluor will begin combining Fluor’s operations & maintenance organization with Stork. Arnold Steenbakker, CEO, Stork, will lead the combined group and report directly to David Seaton, chairman and CEO, Fluor.

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 approximately 19,000 employees.

The acquisition is expected to be accretive to Fluor’s earnings per share in 2016.

Stork has built long-term relationships with a diverse range of blue chip customers. It has operations in Continental Europe, UK, the Middle East, Asia Pacific and the Americas, with an annualized run-rate revenue of approximately €1.6 billion ($1.7 billion) and EBITDA of approximately €100 million ($109 million), implying a transaction multiple of just under seven times EBITDA.

“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,” said Seaton.

“Stork’s business is largely driven by ongoing operating budgets and is therefore less impacted by volatile commodity prices. In addition, Stork’s continuous site presence will help us improve our ability to meet our customers’ needs throughout the full lifecycle of an operating plant and provide Fluor with an ongoing earnings stream and robust growth opportunities,” Seaton added.

“Stork’s activities are complementary to those of Fluor and the combination will create a global leader in the industrial services business,” said Steenbakker.

Goldman Sachs acted as exclusive financial adviser to Fluor

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