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Nordic seeks shareholder nod for acquisition of leading scaffold systems provider, Multiheight Group, for up to $47 million
May 23, 2011
SINGAPORE – 23 May 2011 – Nordic Group Limited (挪迪克集团有限公司), a Singapore-based automation systems integration solutions provider serving mainly the marine and offshore oil and gas industries (“Nordic” or the “Company”), is seeking shareholder approval for the Company’s plan to acquire the Multiheight Group (万高集团) for up to S$47 million.
The acquisition, which involves a 100% equity interest in each of Multiheight Scaffolding Pte Ltd (“MHS”) and Multiheight Marine Pte Ltd (“MHM”), and a 49% equity interest in Multiheight International Co. LLC (“MHI”), is priced based on 60% of Multiheight’s audited FY2010 net profit, 20% of its audited FY2011 net profit and 20% of its audited FY2012 net profit, multiplied by 3.8 times.
The Company’s Extraordinary General Meeting will be held on 7 June 2011.
The Multiheight Group is a leading provider of scaffolding systems for the onshore oil and gas, petrochemical and marine industries, with operations in Singapore and Qatar in the Middle East. Founded in 1990, Singapore-based Multiheight is the resident contractor for companies such as ExxonMobil, Chevron Oronite, Schering-Plough, MSD, BASF, Celanese, Lucite International and Keppel Shipyard.
With the requisite technical capabilities, expertise and infrastructure to execute complex projects, the Group has successfully completed scaffolding systems for several significant projects such as:
• Thunderhawk FPU5500 semi-submersibles (2007)
• The new CIBA AO chemical production plant in Jurong Island (2007)
• ExxonMobil’s Singapore Hydrocarbon Fluid Expansion Project (2007)
• Chevron’s Detergent Expansion Project (2008)
• The spherical tanks at Banyan Vopak Terminal (2009)
• Carigali PTTEPI Operating Company (CPOC) Muda’s largest production platform in Southeast Asia (2009)
• Singapore Parallel Train Project (2009/10)
• Air Liquide’s Hermes Project (2009/10)
• Dynamac’s BP Angola Project (2010)
Its current projects include the SMOE’s EKOL Accommodation Platform Project, Foster Wheeler’s Lanxess Butylene Rubber Singapore Project, and Sembcorp Utility’s Industrial Wastewater Treatment Project.
In Qatar, Multiheight is currently supporting Keppel Offshore & Marine’s joint venture with Qatar Gas Transport Company, “Nakilat”, in a new world-class shipbuilding and ship repair facility in the Port of Ras Laffan. Other completed projects in Qatar include QASCO DRI new steel mill in Mesaieed, the 4 Turbine GE Power Station at Ras Abu Fontas, DEBAJ Workshop Construction, the 6 Turbine Um Mesaieed Power Station, Silo Extension Project, QP Sud-Chemie Project, Qatarlum Project and plant shutdown works.
Multiheight was one of the first in its industry to obtain the ISO9001 (previously known as ISO9002) certification in 1997. Multiheight has also received other quality certifications such as the OHSAS18001:2007 – Erection & Dismantling of Metal Scaffolding and SS506: Part1:2009- Erection & Dismantling of Metal Scaffolding. An approved metal scaffold contractor certified by the Ministry of Manpower, Multiheight has won several awards from the Ministry of Manpower including being 1 of 3 companies to obtain the BizSafe Star Award in 2009. These are testament to Multiheight’s achievements in meeting stringent safety requirements over the years.
Multiheight’s Managing Director Mr Francis Ho (何啟汉)says, “We look forward to the strong synergy that Multiheight and Nordic will get to enjoy. With Multiheight’s robust track record in the onshore oil and gas industry, servicing major local and multinational companies, we see it as a good opportunity for us to penetrate new markets and take Multiheight to the next level of growth. It has always been our aim to provide coordinated engineering services to our clients through alliances with key strategic partners. By partnering Nordic, we can potentially have access to new customers in the marine and offshore sector which Nordic is servicing.”
Commenting on Nordic’s plans to acquire Multiheight, Mr Chang Yeh Hong (张业宏), Chairman and Chief Executive Officer of Nordic, says, “This proposed strategic acquisition is expected to build more sustainable profit growth for Nordic as Multiheight’s focus on the onshore oil and gas, petrochemicals and marine sectors complements our existing marine and offshore oil and gas footprint. It helps to expand our range of products and services to new customers while mitigating our current concentration in the China market where we derive the bulk of our revenue and profits. About a third of Multiheight’s revenue is derived from maintenance contracts which will further provide a more stable income stream to Nordic.”