Intertek has increased its footprint in the Middle East energy market following the £40million acquisition of non-destructive testing specialist International Inspection Services (Inspec).
The global services firm, which has operations in more than 100 countries and tests products ranging from toys and clothes to energy technology, snapped up Inspec from Lamprell Energy.
UAE-based Inspec employs 720 staff, offering specialist non-destructive testing (NDT) services to oil and gas firms in the Middle East.
NDT is a technique used to detect any flaws or defects in oil and gas assets, such as pipelines or power stations, without disrupting operations.
Demand for the technique, which uses technologies such as X-ray, gamma-ray and ultrasonic, has grown on the back of increasing regulation and standardisation of energy assets.
Intertek says the deal builds on previous acquisitions – UK-based NDT Services in 2012 and US-based GXT in 2013 – to create three regional NDT hubs across the business. The firm has also entered into a multi-year preferred supplier agreement with Lamprell for NDT and associated services.
Intertek, which has operations in Bridge of Don and Dyce in Aberdeen and at Sullom Voe on Shetland, says Inspec will form part of its industry and assurance division, and align with existing technical inspection and asset integrity management services in the region.
“Inspec has built a strong footprint and established a reputation as one of the most diverse providers of NDT services in the Middle East and will fit well into our developing portfolio of regional NDT hubs,” said Intertek chief executive Wolfhart Hauser.
“This acquisition represents an exciting extension to our non-destructive testing inspection business, bringing expertise and regional market access, as well as supporting our strategy, started with the 2011 acquisition of Moody International, of building a full scope industry business globally, including core operating and asset integrity skills.”
The group yesterday reported an increase in turnover and pre-tax profits for the year ending December 31, 2013.
Revenue was up 6.3% to £2.18billion, from £2billion the year before, and pre-tax profits rose 2.1% to £314.9million.