ICD-owned Alec Engineering to acquire UAE company Target amid oil and gas expansion

The companies will have a joint turnover of close to $2 billion

Kez Taylor, chief executive of UAE-based Alec Engineering. Photo: Alec
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Alec Engineering and Contracting, a part of the Investment Corporation of Dubai (ICD), has signed a share purchase agreement to acquire UAE-based Target Engineering Construction Company as it seeks to enter the oil and gas sector.

With this agreement, the companies will have a joint turnover of nearly $2 billion, Alec Engineering said on Tuesday.

“This acquisition further advances Alec's position in the regional construction industry while simultaneously enabling it to enter and fast-track its strategy of becoming a key player in the Middle East oil and gas, and energy and renewables sectors by drawing from the extensive expertise and resources that Target Engineering has developed,” Khalifa Al Daboos, deputy chief executive at ICD, said.

“For the Investment Corporation of Dubai, this move enables us to align strongly with the UAE government’s ongoing investment into developing world-class critical infrastructure facilities that support its ambition of being an advanced, sustainable economy.”

Target was established in 1975 and operates through four specialised divisions including mechanical oil and gas, electrical, civil and marine units, its website says.

The company's customer base includes oil and gas companies, major EPC (engineering, procurement, and construction) contractors, government entities and property developers.

Its completed projects include work at Enec's Barakah nuclear power plant, Adnoc gas processing's Ruwais LNG terminal, Saudi Aramco's Abqaiq plant, and Enoc's Jebel Ali Refinery expansion.

Current active projects include Borouge 4 and Delma B in a joint venture for Adnoc.

By acquiring 100 per cent of the company, Alec will boost its resources with the significant assets held by Target, including its 11,000-strong workforce, more than 30 marine vessels and 52,000 square metres of fabrication facilities.

Additionally, this includes Target's controlling stake in Idrotec srl, an Italian marine and coastal engineering company specialising in marine, hydraulic and environmental design for the oil and gas sector and marine developments.

Target will continue to operate as an independent entity, while drawing on the skills and resources of the broader Alec Group, the acquiring company said.

Alec continues to leverage its capabilities to “enter into, and become a market leader in new market segments”, said Kez Taylor, chief executive of Alec Engineering.

“Bringing Target Engineering within our fold is a move that plays to both these objectives as their specialist skill sets in oil, gas, energy — including renewables, marine, and industrial construction — perfectly augment Alec's own capabilities. This will enable us to present an even stronger joint value proposition to customers,” he said.

Target Engineering will benefit from Alec's “strong financial position” and “project execution capabilities”, Chaouci Yassine, chief executive of Target, said.

“This will fuel our ambitious growth plans across the Middle East as we can now deliver … EPC and specialist marine services to an even broader segment of high-profile regional entities,” Mr Yassine said.

Updated: December 20, 2022, 9:29 AM