Aberdeen-based Wood Group has acquired CEC Controls Co Inc, a management-owned designer and builder of industrial and process control systems (primarily for the automotive manufacturing industry), for an initial $44 million — with a further $15 million payable over the next three years.
Established in 1966, CEC Controls is based near Detroit and employs more than 220 people in North America and Romania.
The acquisition further deepens Wood Group’s automation and control capabilities, following its acquisition in September 2015 of the Automated Technology Group (one of the UK’s largest independent suppliers of control and power solutions for industrial automation).
CEC Controls’ current clients include Ford, GM and Fiat-Chrysler, and the business will continue to be led by its existing management team. The company currently has assets of $34 million and generated $9.6 million in earnings before interest, tax and write-downs in 2016.
Robin Watson, Wood Group’s chief executive, said: “Bringing 50 years of expertise in delivering services to the automotive sector, CEC Controls significantly complements and strengthens the innovative technical solutions we provide to clients within automation and control.
“The acquisition supports the geographical broadening of our footprint within the automotive sector, particularly in the USA, and deepens our presence in the key automotive hub of Detroit, where CEC Controls is headquartered.
“It also gives us the opportunity to further enhance the industrial process and control capabilities that we offer to this industry and adjacent sectors, including aerospace, logistics, water and pharmaceuticals.”
Meanwhile, Hess Corporation has signed a non-exclusive 10-year global agreement with Wood Group to provide services relating to engineering, project management, construction, commissioning, operations and maintenance, integrity management, sub-sea, and decommissioning.
The two companies have worked together for more than 25 years on a wide range of projects world-wide.