US - Lloyd's Register Group whose members provide independent assurance to companies operating high-risk, capital-intensive assets primarily in the energy and shipping industries has acquired Texas based WEST Engineering Services in a deal which it says will make the group the top independent provider of technical services to the offshore drilling sector.
WEST Engineering Services, predominantly experts in subsea systems, will join the Lloyd's Register Group effective 1st May and will combine with the ModuSpec Group and other members to offer the world's most comprehensive suite of technical services to owners and operators of offshore drilling rigs. WEST's employees will be co-located with ModuSpec USA in Lloyd's Register America's headquarters in Houston from where they will work to provide a comprehensive portfolio of services to the upstream areas of exploration, production and transport prior to refining. Over time, it is expected that the two companies will fully integrate to form a single entity.
The acquisition of WEST will be a further boost to a Lloyd's Register's Energy division whose income grew at an annual rate of 24% between the 2005/06 and 2010/11 fiscal years, during which time Group income increased from £420 million to £855 million. Michael Montgomery, owner and founder of WEST, will retire as President and will be retained by Lloyd's Register as an advisor. Paul Huber, President, Lloyd’s Register Americas, Inc, will become the President of WEST, while Duco de Haan will remain as the Chief Executive Officer and Managing Director of the ModuSpec Group. Mr Montgomery commented:
“I am extremely pleased to continue the growth of WEST and to secure the future of our valuable employees and customers by becoming a part of a company that shares many of the same values as us. The Lloyd’s Register Group shares our commitment to people and also has a reputation for excellence in independent verification services. I am very grateful to Len Paton with PPHB for helping us find such a great fit.”
Paul Huber agreed that the two businesses were highly complementary saying:
"This is a highly strategic acquisition as it combines companies that are known for innovation and leadership in the systems and well-control areas of offshore drilling. All the members of the Lloyd’s Register Group -- new and old -- have a shared ambition: to make the drilling industry safer and more reliable. The acquisition of WEST is another step in the execution of our strategy to add value to society and achieve sustainable growth by providing independent assurance and expert advice to those who operate the critical infrastructure on which we all rely."