Engineering and construction firm Fluor Corp. (NYSE: FLR) announced Monday morning that it had signed an agreement with private equity firm Arle Capital Partners to acquire all of Netherlands-based Stork Holding for €695 ($755 million). Stork provides maintenance, modification and asset integrity services globally to large existing industrial facilities.
Fluor’s acquisition has a vertical dimension, according to CEO David Seaton:
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. 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.
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.
Fluor will finance the acquisition by issuing debt in international markets, and the deal is expected to close in the first half of 2016.
Stork will be combined with Fluor’s own operations and maintenance group and will do business under the Stork brand and under the direction of Stork’s current chief executive officer, Arnold Steenbakker. The division will have about 19,000 employees and an annual turnover of approximately $2.3 billion.
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