• InfraStrata announced that it will purchase principal assets for a total consideration of £6 million
• 100% of employees will be retained following the acquisition
InfraStrata, the UK quoted company focused on strategic infrastructure projects, has signed heads of terms to purchase the principal assets of Harland and Wolff Heavy Industries Limited and Harland and Wolff Group Plc for a total consideration of £6 million.
The assets comprise of a multi-purpose fabrication facility, quaysides and docking facilities in the port of Belfast, Northern Ireland, ideally suited for the energy infrastructure industry.
The acquisition will enable InfraStrata to bring in-house a large part of the fabrication requirements for the company’s Islandmagee Gas Storage Project and proposed FSRU project.
InfraStrata is also pleased to announce that 100% of the 79 employees, who did not opt for voluntary redundancy earlier in the year, will be retained immediately following completion of the acquisition.
The InfraStrata Board plans to significantly increase the size of the workforce by several hundred over the next five years as it progresses the development of its infrastructure projects. The number of employees at the Islandmagee Gas Storage Project will also scale to 400 during construction and will employ circa 60 personnel when in operation.
The acquisition of the Harland and Wolff Shipyard presents InfraStrata with an opportunity to create secondary revenue streams through contracts in defence, maritime and the energy sectors should such opportunities arise in future.
John Wood, CEO of InfraStrata, said:
“Harland and Wolff is a landmark asset and its reputation as one of the finest multi-purpose fabrication facilities in Europe is testament to its highly skilled team in Belfast. This acquisition is a function of deep operational synergies between the various business segments of the Company with Harland and Wolff underpinning the construction economics of the Islandmagee Gas Storage Project and other future Projects. We are delighted to be able to retain 100% of personnel who did not opt to take voluntary redundancy earlier this year.
“Our Islandmagee Gas Storage Project will benefit greatly from their expertise in the energy sector, both technically and economically, and we look forward to growing the workforce significantly in the coming years. While our core priority will be to deliver our flagship project in Islandmagee, we believe there are opportunities to welcome potential new clients due to the diverse skill set at the facility. This acquisition will clearly provide substantial advantages through vertical integration in addition to demonstrating our commitment to the Northern Irish economy, particularly in the post-Brexit era.”
Julian Smith, Secretary of State for Northern Ireland, said:
“I am delighted by the news that InfraStrata has purchased the Harland and Wolff shipyard and retained the skills and experience of the existing workforce. I firmly believe that the shipyard has a promising future and that InfraStrata’s plans present an exciting opportunity for both Belfast and Northern Ireland’s manufacturing and energy sectors.”
Background to agreement:
InfraStrata has paid a deposit of £500,000 through a short-term bridging facility. The £5.5 million balance of the Acquisition consideration is payable in two tranches: £3.3 million by 31 October 2019 (or the Backstop Date of 31 December 2019) and £2.2 million by 30 April 2020, which is proposed to be funded by a debt and equity mix. The Company is already in advanced discussions with asset backed lenders and financial institutions to put in place medium to long term debt-equity structures.
Sea News, October 1