- Creating a global leader in industrial services broadening geographic coverage
- Expanding services scope throughout the full lifecycle of operating plants
- Fluor’s Operations & Maintenance organization to be combined with Stork
- Combined group branded Stork and headquartered in the Netherlands
Fluor
Corporation (NYSE: FLR) and Stork
announced today that Fluor has signed an agreement with UK-based private
equity firm Arle Capital Partners to acquire 100 percent of Stork
Holding B.V., based in the Netherlands, for an investment of €695
million ($755 million).
Stork is a global provider of maintenance, modification and asset
integrity services associated with large existing industrial facilities
in the oil and gas, chemicals, petrochemicals, industrial and power
markets. Founded in 1827, Stork has built a powerful brand in the
industry and has long-term relationships with a diverse range of blue
chip customers. It has operations in Continental Europe, United Kingdom,
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.
“The acquisition of Stork is consistent with Fluor’s goal to further
enhance our integrated solutions capabilities in thoughtful, strategic
ways that will increase the value we deliver to our clients and
shareholders,” said Fluor’s Chairman and CEO David Seaton. “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.
Stork is highly complementary to Fluor as it gives both businesses the
opportunity to market diverse services and capabilities to new customers
and across new geographies.”
“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.
According to current Stork CEO Arnold Steenbakker, “We are very proud
that a world-class company like Fluor recognizes Stork’s strong
reputation, capable workforce and performance as a global industrial
services provider. The combination will create new opportunities to
expand our global footprint and deepen the product and services offering
to our customers. Stork’s activities are complementary to those of Fluor
and the combination will create a global leader in the industrial
services business.”
Upon closing of the acquisition, Fluor will begin combining Fluor’s
Operations & Maintenance organization with Stork. Current Stork CEO,
Arnold Steenbakker, will lead the combined group and report directly to
Fluor’s CEO, David Seaton. The management team will be formed by Stork’s
existing management combined with the managers of Fluor’s Operations &
Maintenance business. 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. Fluor expects to achieve significant synergies including
increased revenues from cross-selling and expansion into new markets.
The transaction multiple would be under six times Stork’s EBITDA
including run-rate revenue synergies. Fluor intends to fully finance the
cash required for the transaction through the issuance of debt in
international markets. The acquisition is expected to close in the first
half of 2016 and is subject to regulatory approvals and consultation
procedures with Stork’s work council.
Goldman Sachs acted as exclusive financial adviser to Fluor.
About Stork
Stork offers services and products associated with maintenance,
modifications and assurance of asset integrity of production facilities.
The company delivers technical support that spans the asset lifecycles
of its customers’ operations. From concept through to execution, Stork
aims to reduce risk, assure safety and improve asset performance for its
customers to enhance their profits. With more than 15,000 employees
worldwide (Middle East, Asia, Europe, Africa and the Americas), Stork
provides innovative solutions in the areas of asset integrity,
maintenance, modifications, consultancy, inspections, repair,
renovations, relocations and other related complex projects in the oil
and gas, chemicals, petrochemicals, industrial and power markets.
About Fluor Corporation
Fluor
Corporation (NYSE: FLR) is a global engineering and construction
firm that designs and builds some of the world's most complex projects.
The company creates and delivers innovative and integrated solutions for
its clients in engineering, procurement, fabrication, construction,
maintenance and project management on a global basis. For more than a
century, Fluor has served clients in the energy, chemicals, government,
industrial, infrastructure, mining and power market sectors.
Headquartered in Irving, Texas, Fluor ranks 136 on the FORTUNE
500 list. With 40,000 employees worldwide, the company's revenue for
2014 was $21.5 billion. For more information, visit www.fluor.com
or follow on Twitter @FluorCorp.
Forward-Looking Statements: This
release contains forward-looking statements (including without
limitation statements using words such as "believes," "expects,"
“intends,” "anticipates," “will,” "plans," “goals” or other similar
expressions) with respect to the acquisition of Stork. These
forward-looking statements can be identified by the fact that they do
not relate only to historical or current facts. Such
forward-looking statements include, but are not limited to, statements
about the benefits of the transaction, including anticipated future
financial and operating results; synergies, accretion and growth rates;
the Company’s plans with regard to Stork’s future operations, plans and
objectives; the expected timing of completion of the transaction; and
the Company’s plans to finance the transaction. Actual plans and results
may differ materially as a result of a number of factors, including,
among other things, failure to realize the expected benefits and
synergies of the transaction; general economic and business conditions
that affect the Company or Stork following the transaction; significant
unknown Stork liabilities; changes in global, political, economic,
business, competitive, market and regulatory forces; changes in tax and
other laws, regulations, and policies; the loss of key senior management
of Stork; the availability of international debt at favorable rates; and
the delay or failure to receive regulatory approvals. Caution must be
exercised in relying on these and other forward-looking statements. Due
to known and unknown risks, the Company’s plans with regard to Stork and
actual results may differ materially from its expectations and
projections.
Additional information concerning risks and other uncertainties can
be found in the Company's public periodic filings with the Securities
and Exchange Commission, including the discussion under the heading
"Item 1A. Risk Factors" in the Company's Form 10-K filed on February 18,
2015. Such filings are available either publicly or upon request from
Fluor's Investor Relations Department: (469) 398-7070. The Company
disclaims any intent or obligation other than as required by law to
update its forward-looking statements in light of new information or
future events.
Fluor CorporationMedia RelationsLisa Bottle, +1-469-816-2983orJanet Kearns, +44 7802 373466orInvestor RelationsGeoff Telfer, +1-469-398-7070orJason Landkamer, +1-469-398-7222orStork Holding B.V.Media RelationsBeatrijs van de Ven, +31 (0) 6 51 566 513