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Monday, 24 October 2011 10:23

Troubled Mouchel sells gas pipeline business to Mott MacDonald

Troubled consultancy Mouchel has sold yet another business - engineering, management and development consultancy Mott MacDonald has announced that it has acquired Mouchel Energy Ltd.

Mott MacDonald paid an initial consideration of approximately £2.55 million in cash for the share capital of Mouchel Energy Limited, a new company set up for the purpose of the disposal.  

The transaction is also subject to post-completion adjustments for which an additional cash consideration capped at approximately £0.85 million will be payable to Mouchel.

The proceeds from the sale will be used to repay a portion of the company's debt.

For the year ended 31 July 2010, the pipeline design business reported a post-exceptional profit before tax of £0.09 million on net revenue of £4.7 million.  At 31 January 2011, gross assets subject to the disposal were £2.3 million.

The pipeline design business is led and managed by Colin Brewster, who will remain with it under Mott MacDonald's ownership. 

Commenting on the disposal, Grant Rumbles, the new Chief Executive of Mouchel, said that following the recent agreement to sell Mouchel Rail, the sale of Mouchel's pipeline design business was another key step in the strategy of focussing on Mouchel's leading positions in core markets. 

Annoucing the deal, Mott MacDonald said bringing Mouchel Energy on board will give the Group a strong base in the UK gas pipeline business which it will develop and expand as a centre of expertise to benefit clients worldwide. 

Based in Hinckley in Leicestershire, Mouchel Energy provides engineering design consultancy to the gas and wider energy sector. Formerly known as Gas Experts Limited, the company joined Mouchel in 2003. It has 50 fulltime staff and enjoys a high level of repeat business with longstanding clients - particularly National Grid for whom it provides an ongoing service maintaining and upgrading the UK national gas transmission network.

Mott MacDonald has more than 1400 staff in its global oil, gas and petrochemicals team engaged in developing, designing and providing project management services for onshore and offshore facilities and providing leading expertise on cross border supply issues and alternative technologies.

Projects include engineering, procurement and construction management services around the world and advising the EU, government ministers and global oil companies on energy strategy, development and supply security.

Commenting on the acquisition Mott MacDonald’s chairman Keith Howells said:

“Mouchel’s gas pipeline team shares our culture of professional excellence, innovation and environmental sustainability. This acquisition means we will be able to offer our clients an enhanced suite of capabilities embracing all areas of the energy sector and all facets of project development.”

Colin Brewster said the deal would bring new opportunities:

“Having access to Mott MacDonald’s global network and resources enables us to jointly offer our customers a more comprehensive service. For our staff, it provides increased opportunities to work on major multidisciplinary projects, which are a particular forte of Mott MacDonald.”

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