Australia's infrastructure & environmental services consultancy Cardno Ltd. reported its largest acquisition to date with the purchase of the PPI Group of companies (PPI) headquartered in Houston, Texas for US$145 million.
Cardno CEO, Michael Renshaw said the acquisition of PPI is in line with the firm’s strategy of expansion in attractive growth markets such as energy. “This acquisition will strengthen Cardno’s ability to service the expanding oil and gas sector in the United States and in key emerging markets.” Renshaw said.
He said PPI’s engineering services to the midstream and upstream oil and gas sector will complement Cardno’s existing environmental and permitting capabilities in this market. Renshaw said PPI provides Cardno with new capabilities and proprietary systems in asset and quality management which has application in other asset intensive industries.
“While concentrated on the oil and gas market, PPI is diversified in terms of services offered and in geographic markets served. In addition to the primary markets of the United States and Nigeria, PPI is currently delivering projects in Australia, Singapore, South Korea, Japan, Malaysia and Angola,” Renshaw said.
He also said that oil, gas and energy clients will now account for around 25% of the firm’s annual revenue.
The acquisition creates a range of growth opportunities through:
Key acquisition risks are mitigated by Cardno’s robust due diligence and integration process.
“Plans and incentives are in place to ensure PPI’s key management will remain active in the company, which will be known as Cardno PPI,” Renshaw said.