Wood Group has acquired the trade and assets of Enterprise Engineering Service Limited’s (EESL) Aberdeen based fabrication and manufacturing business, following an announcement last month that EESL had appointed administrators.
The acquisition adds to Wood Group’s asset integrity management capabilities, by including fabrication to its services as the company extends the life of upstream and midstream assets in the UK oil and gas sector.
Wood Group said 10 employees of EESL’s Aberdeen based fabrication business will transfer across and will remain at their existing 4,000sq m fabrication facility located on Craigshaw Road, Aberdeen.
EESL had 115 employees when it went into administration last month.
Wood Group PSN chief executive Dave Stewart, said: “The acquisition of Enterprise Engineering Service Ltd.’s fabrication and manufacturing business broadens our repair order capabilities, enabling us to offer a fully integrated, end-to-end service that supports our clients in assuring the integrity of their assets.
“Our focus is on providing the expertise that enables the life extension of onshore and offshore assets, which is critical in this mature phase of the UKCS.
“We will leverage EESL’s more than 40 years of expertise providing manufacturing and fabrication solutions to the oil and gas sector, securing jobs for the company’s current Aberdeen fabrication workforce with a view to creating new employment opportunities as we deepen and broaden our fabrication capability in the future.”
Blair Nimmo, joint administrator and head of restructuring for KPMG in the UK, said: “The joint administrators are delighted to conclude a sale of EESL’s manufacturing facility and key assets in Aberdeen to Wood Group, following a successful marketing exercise.
“We were confident that the excellent market reputation and facilities attached to EESL’s manufacturing division would generate interest and we are extremely pleased to have secured a sale to a major quality company such as Wood Group.”