TARGET Engineering 100% acquired by ICD’s ALEC
ALEC Engineering and Contracting, the Dubai-based contractor that is part of the Investment Corporation of Dubai (ICD) portfolio, has said that it has completed the signing of a share purchase agreement to acquire TARGET Engineering Construction Company, a major EPC contractor operating primarily in the oil and gas sector and commercial sectors.
In a statement, ALEC said that the agreement will see it acquire 100% of TARGET. The contractor added that it will enhance its resources via the significant assets held by TARGET Engineering.
These include its TARGET’s 11,000 strong workforce, more than 30 marine vessels, and 52,000sqm of API/ASME-certified fabrication facilities. Additionally, the acquisition will include a controlling stake in IDROTEC srl, an Italian specialised marine design engineering firm.
“ALEC has an established track record of continuously enhancing the skills and capabilities within the organisation and leveraging this expertise to enter – and become a market leader – in new market segments.
“Bringing TARGET Engineering within our fold is a move that plays to both these objectives as their specialist skillsets in Oil & 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,” said Kez Taylor, CEO at ALEC.
Once complete, the acquisition will mean that the companies will have a joint turnover of nearly US$2 billion. However, TARGET will continue to operate as an independent entity, while drawing on the skills and resources of the broader ALEC Group, the statement continued.
“This acquisition further advances ALEC’s position in the regional construction industry while simultaneously enabling it to enter and fast-track its strategy of becoming a key player in the Middle East Oil & Gas, and Energy and Renewables sectors by drawing from the extensive expertise, and resources that TARGET Engineering has developed over its celebrated 40-year history,” said Khalifa Al Daboos, Deputy CEO at ICD.
“For the Investment Corporation of Dubai, this move enables us to align strongly with the UAE government’s ongoing investment into developing world-class critical infrastructure facilities that support its ambition of being an advanced, sustainable economy.”
Landmark Agreement
Founded in 1975, TARGET Engineering operates through four specialised divisions — Mechanical Oil & Gas, Electrical, Civil, and Marine. The company's customer base is comprised of leading Oil & Gas companies, major EPC (Engineering, procurement, and construction) contractors, government entities and property developers.
Amongst the noteworthy projects that it has successfully completed include work on ENEC's Barakah Nuclear Power Plant, ADNOC Gas Processing's Ruwais LNG Terminal, Saudi Aramco's Abqiq plant, and ENOC's Jebal Ali Refinery expansion.
Its portfolio also includes current active projects such as Borouge 4 and Delma B in joint venture for ADNOC, and IGDC for ADGAS.
“Today’s announcement is a landmark event in the over four-decade long journey of our company”, said Chaouci Yassine, CEO of TARGET Engineering.
“We will now benefit from the strong financial position and world-class leadership and project execution capabilities of ALEC. 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,” he concluded.