Energy. It’s brought us all to where we are today. And it’s the unity of Kentech and SNC-Lavalin Oil & Gas Division that brought us to Kent; an all-new Integrated Energy Services Company. Fusing together our heritage and future, our people and natural resources, our trades and high-end engineering, our problem solving and grit. To create a new energy in our industry, with new levels of capability and ambition. We now have a global footprint, with 10,000 employees across 84 nationalities. It is a landmark deal which positions us as a leading integrated energy services company and reinforces our ambition to be better, stronger and faster than our would-be competitors.
Our newly-formed company will immediately benefit from a strong and diversified combined roster of blue-chip clients in the energy space. We’ve also got an enviable track record on some of the world’s most complex and ambitious projects. Now, Kent will compete for prime new projects in the global arena, confident in its financial strength and full range of specialist expertise.
The acquisition is also much more than meets the eye. It reunites Kentech and Kentz, two leading global businesses with a very personal and shared 100-year heritage. It brings the professionals from SNC-Lavalin Oil & Gas (including offshore wind, hydrogen, CCUS and low carbon solutions expertise from the former Atkins business) and Houston Offshore Engineering. All of these companies have grown through ambition rooted in people and doing the right thing. We’ll surpass that success together under one new Kent.
Our talented, adventurous and skilled team, our vast market reach, and robust balance sheet now allows us to compete for premium, complex and technical contracts across all global energy markets. SNC-Lavalin’s Oil & Gas Division includes people and assets brought together through their previous acquisitions of Kentz and a portion of the Atkins business. This will compliment Kentech’s global reach and services to create a stronger offering across the full asset life cycle – from consulting to design and build, commissioning and start-up, through to maintenance, modification and turnaround, as well as decommissioning services.
Combined, Kent now offers a truly global footprint, reaching across key countries in the Americas, Europe and the Caspian, the Middle East & Africa, Russia and the Asia-Pacific region. This further strengthens our pool of specialist talent, geographical reach, and the robust balance sheet to compete for premium contracts covering complex and technical projects. By investing now, we are strategically positioning the company to take advantage of the next cycle of growth.
We are also actively addressing the challenges of the global energy transition. This acquisition will allow us to realise our long-held ambitions to become a significant player in this space. We will be at the forefront of helping our clients move towards a cleaner and greener future. Our engineers and consultants think and act nimbly to translate our clients’ clean energy vision and realise their goals.
30 July 2021: Kent (or the “Company”), a leading international integrated energy services partner formerly known as Kentech, provides the following updates:
John Gilley, previously chief executive officer of Kentech, has been confirmed Kent’s CEO and the Company’s senior leadership is composed from a blend of executives from both organisations.
John Gilley, Chief Executive Officer, Kent, said:
“Following the acquisition of the SNC-Lavalin Oil and Gas division, we have become a leading player with international reach and full-service capability for energy, chemicals, renewables and low carbon industries. We are now fully equipped to meet the most challenging of technical projects and are ready to support clients in their energy transition ambitions as the world moves towards a low-carbon economy.
“The investments we have already made and the new ones we are making give us an enormous advantage, allowing us to undertake complex technical projects to support the needs of our clients across the full energy spectrum. The expansion of our geographical reach into the Americas, Europe, the Caspian, the Middle East and Africa, give us truly global reach, allowing us to follow our clients wherever they may go and cater to their evolving needs.
“Furthermore, the combination has made Kent home to 10,000 professionals, among the energy industry’s brightest and most innovative minds, who are working around the clock to find solutions to our clients’ most challenging requirements.”
Kent completes the acquisition of the majority of SNC-Lavalin’s oil and gas division, with a minority portion to follow receipt of final regulatory approvals at a later date. Kent is now a leading international integrated energy services partner. The combination gives the Company an expanded specialist talent pool, geographical reach and a robust balance sheet to compete for complex and technical projects. It makes Kent fully active in helping traditional upstream, midstream and downstream industries, and enables it to design, build and maintain across four main services: engineering and consulting; projects; completions, commissioning and start-up; and operations and maintenance.
The Company’s blue-chip client base comprises IOCs, NOCs and independent energy and chemical companies operating across the Americas, Europe and the Caspian, the Middle East & Africa and Asia-Pacific. It currently has over 80 active projects across 24 countries. It is one of the few companies with sufficient scale, depth of services offering and global reach to take on relevant projects.
John Gilley, previously chief executive officer of Kentech, has become Kent’s CEO and the Company’s senior leadership is composed from a blend of executives from both organisations. Mr Gilley has been with Kentech since 2001 and its CEO since April 2020. He has been tasked with growing Kent’s specialist offerings and leading the company’s diverse talent base of employees, spread across 84 nationalities around the world.
As part of the acquisition Kent has gained a strong foothold in the energy transition space via its acquisition of the oil & gas capabilities (including offshore wind, hydrogen, CCUS, and low carbon solutions) of the former Atkins business. Kent aims to expand the energy transition mix within the overall business alongside its clients’ transition.
John Kent, Chief Energy Transition Officer, Kent, commented:
“We have gathered some of the brightest minds in the energy transition business to help accelerate the world to a cleaner future. Harnessing the talent of our team we are partnering with our clients to deliver their ambitious plans over the coming decade to deliver the transition in a sustainable way.”
Fundraising and project wins
Kent successfully completed a senior secured private bond placement totalling $65 million. The proceeds will be used to fund the acquisition of the SNC oil & gas business and provide headroom for working capital. As part of the acquisition, Bluewater has committed to a further capital injection, signalling strong shareholder commitment.
The combined business will also deliver in excess of $500 million in new contractual awards secured across all our regions and service offerings. Furthermore, these wins provide Kent with substantial growth visibility and allows us to focus on new opportunities going into the second half of the year as well as providing a major boost to our current backlog.
Ben Jones, Chief Financial Officer, Kent, added:
“This announcement marks an important milestone in our corporate history. The successful fundraise and acquisition will enable us to substantially increase our global footprint and to take on larger, more complex projects. The fundraise also demonstrates the strength of investor interest and confidence in Kent and its long-term value proposition. I would like to welcome all our new investors and thank our existing shareholder, Bluewater, for their ongoing support and commitment to our growth strategy.”
Engineering and consulting: focusing on high-value front end engineering design (FEED), design and consultancy services in traditional hydrocarbon and petrochemical sectors and, importantly, in sustainable energy and transition solutions
Projects: focusing on the project management consultancy (PMC) and site execution of the energy projects of any size and complexity across the globe
Commissioning, Completion & Start-Up: focusing on moving facilities from mechanical completion to full operations in the safest and most expedient way possible
Operations & Maintenance: focusing on maintenance, turnaround, and modification services through the operational life of the asset