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Dubai-government owned ALEC Engineering and Construction LLC is to acquire Target Engineering, a subsidiary of the construction giant Arabtec, which was dissolved by shareholders in 2020.
ALEC, which is owned by Investment Corporation of Dubai (ICD), the principal investment arm of the emirate, said the joint turnovers of the companies will be $2 billion.
A share purchase agreement has been signed to acquire 100% of Target, which operates in the oil and gas sector, as well as engineering, procurement and construction (EPC), a statement by ALEC said on Tuesday.
Under the transaction, ALEC will acquire Target’s assets, including its 11,000-strong workforce, 30 marine vessels and 52,000 square metres of fabrication facilities, the company said.
“Additionally, this includes TARGET’s controlling stake in IDROTEC srl, an Italian specialised marine design engineering firm renowned worldwide for its specialist marine, hydraulic and environmental design for the oil and gas sector and marine developments,” a statement said.
“ALEC has an established track record of continuously enhancing the skills and capabilities within the organisation, and leveraging this expertise to enter into, and become a market leader in new market segments,” said CEO Kez Taylor.
“Bringing TARGET Engineering within our fold is a move that plays to both these objectives as their specialist skillsets in oil and 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.”
Arabtec, which was famous for building Dubai’s Burj Khalifa, the world’s tallest tower, confirmed early in 2021 that it was selling its subsidiaries, following its shareholders’ vote to dissolve the company the previous year. It said its financial position became untenable, as the COVID-19 pandemic forced a construction hiatus and heavily impacted demand.
Chaouci Yassine, CEO of Target, said the company will benefit from ALEC’s “strong financial position and world-class leadership”, as well as its “project execution capabilities”.
“Today’s announcement is a landmark event in the over four-decade long journey of our company…This will fuel our ambitious growth plans across the Middle East, as we can now deliver best-of-breed EPC and specialist marine services to an even broader segment of high-profile regional entities.”
(Reporting by Imogen Lillywhite; editing by Cleofe Maceda)
