Global takeover is ‘win-win’ for engineering firm
One of Wales’ leading engineering firms has been acquired in a multi-millionpound deal, with its new owners looking to significantly increase its global presence.
Based in the Vale of Glamorgan, and with operations in 16 countries, Harris Pye Engineering Group has been acquired by private equity firm Joulon.
Harris Pye is a specialist in the provision of repairs, upgrades and conversions to the marine, offshore oil and gas, and associated onshore industrial sectors.
Joulon was created in partnership with global investment firm KKR to acquire well-established companies globally. The investment in Joulon comes from multiple funds managed or advised by KKR.
Harris Pye has been acquired primarily to add capability to the project management platform for the Joulon Group and will also have an impact on the majority of the Joulon platforms.
Joulon’s vice-chairman and chief executive Abhishek Kuma said: “We are really excited to have Harris Pye as part of Joulon Group. Harris Pye’s extensive global presence and expertise in executing large distributed complex projects across any asset class is an invaluable enhancement to our capabilities.”
Harris Pye’s chief executive Mark Prendergast said: “This is very much a win-win situation. It is very much ‘business as usual’ for the group, with its global team of 1,700 based in 17 facilities and offices around the world.
“The network stretches from Brazil to Japan, North America and Canada to Australia, and includes major workshops in Wales, Brazil, Sharjah and Singapore.
“We remain a proud Welsh company and the strength of our new owner allows us to compete as a tier-one contractor going forward, and that is good for Wales and all 16 countries in which we are based, as it cements jobs and brings new opportunities for job creation. Our Welsh base Llandow remains our prime fabrication facility.
“KKR/Joulon’s ambition is to grow the Harris Pye Group to many times its current size through investment, strategic acquisition and increasing market share across the marine, offshore oil and gas, industrial and power services and renewable energy sectors.
“This ambitious growth plan is very much in line with the directors’ desires, and the fact that we are now a part of one of the world’s largest private equity groups will strengthen our financial backing and allow us to bid for complete projects as a tier-one EPC contractor, not further down the supply chain as at present.”
Under the new ownership Mr Prendergast remains as chief executive, Chris David as chief operating officer and David Walters as chief financial officer. New boards will be confirmed shortly.
In 2016 Harris Pye Engineering Group generated sales of £73m. The value of the acquisition by Joulon has not been disclosed.