The deal will create a new engineering and technical consultancy that offers specialist asset performance, risk management and project management expertise
LR’s Energy business worked on complex and large-scale energy projects. (Credit: Lloyd's Register Group Services Limited)
Global professional services firm Lloyd’s Register Group (LR) has signed an agreement to divest its Energy business unit to investment firm Inspirit Capital.
The sale follows a comprehensive review by LR for its business portfolio and strategic direction.
The deal is expected to create a new engineering and technical consultancy, which would offer specialist asset performance, risk management and project management expertise across complex industrial assets, the energy transition and rail infrastructure.
Founded in the 1930s, LR’s Energy business worked on complex and large-scale energy projects.
Since 2005, LR Energy made strategic acquisitions including Capstone, ODS, Human Engineering, Celerity3, ModuSpec, Scandpower and WEST Engineering.
The business further expanded its portfolio with the acquisition of Senergy in 2013, covering the full energy value chain and life cycle.
Deal forms part of LR’s ongoing strategic review of its business
LR CEO Alastair Marsh said that the decision is a part of an ongoing strategic review of its business and is the best option to realise the long-term growth potential of the company’s Energy business.
Marsh added: “LR Energy offers world-class engineering solutions across the sector, and the partnership with Inspirit provides them with further support and investment to underpin their growth objectives.”
The transaction is planned to be completed on or before 31 October 2020. Financial terms of the deal were undisclosed.
Inspirit Capital founding partner Will Stamp said: “LR’s Energy division has an excellent reputation internationally and we are proud to be supporting the next phase in the development of the business.”
LR energy director David Clark said that the deal supports its mission to help clients tackle complexity head-on.
Clark added: “This announcement provides us with a partner to build on our existing track record and unlock our growth potential as a standalone business, offering our full suite of technical, regulatory and operational expertise.
“The increasing complexity we are seeing, with the transition and restructuring of the energy markets and the impact of digital transformation across our global energy, complex industrial and transport customers, means our solutions are more relevant than ever.”