French construction equipment maker Altrad Investment Authority has agreed to acquire UK-based oil services company Cape for approximately £332.2m in an all-cash deal.

The acquisition is expected to result in a number of significant benefits owing to the strategic fit between Cape and Altrad. It would club together the respective strengths of Altrad and Cape into a multi-disciplinary industrial services provider in key markets across the world.

The combined entity is expected to have a strong competitive edge and will be able to cover both Cape and Altrad customers' requirements.

According to Altrad Group chairman Mohed Altrad, the acquisition is totally in line with the company’s growth strategy to become a major global provider of industrial services, light construction equipment and scaffolding solutions in the civil and industrial sectors.

Mohed Altrad added: “Altrad and Cape have strong complementarity in geographic and product mix enabling the creation of a multi-disciplinary industrial services leader in key markets around the world.”

Listed on the London Stock Exchange, Cape provides critical industrial services mainly to the energy and natural resources sectors.

Its multi-disciplinary services include access systems, specialist coatings, passive fire protection, insulation, refractory linings, oil and gas storage tanks, heat exchanger replacement and refurbishment, mechanical services and environmental services.

Cape chairman Tim Eggar said: “Under the leadership of its current management team, Cape has made significant strategic, operational and financial progress, and despite a more challenging year anticipated in 2018, the Cape Board has confidence in Cape's future prospects.

“However, we believe that the Offer from Altrad represents fair and reasonable value in cash today for Cape Shareholders recognising Cape's prospects and growth potential.”

The acquisition, which will be done by Altrad through its wholly-owned subsidiary Altrad UK, is expected to be completed in September. It will be subject to the approval from the Merger Control Clearance among other conditions.