oil and gas

The Netherlands-based Stork provides maintenance, modification and asset integrity services for large existing industrial facilities in the oil and gas, chemicals, petrochemicals, industrial and power markets.

Fluor said that the acquisition is a part of its effort to boost its integrated solutions capabilities in order to increase the value to clients and shareholders.

Fluor chairman and CEO David Seaton said: "We are pleased to welcome Stork’s talented workforce of more than 15,000 employees, which will provide us with additional flexibility and capacity to increase our maintenance and direct construction activities.

"Stork is highly complementary to Fluor as it gives both businesses the opportunity to market diverse services and capabilities to new customers and across new geographies.

"Stork’s business is largely driven by ongoing operating budgets and is therefore less impacted by volatile commodity prices."

Fluor also expects Stork to help improve its ability to meet customers’ needs throughout the full lifecycle of an operating plant, as well as provide earnings stream and growth opportunities.

Stork CEO Arnold Steenbakker saod: "The combination will create new opportunities to expand our global footprint and deepen the product and services offering to our customers.

"Stork’s activities are complementary to those of Fluor and the combination will create a global leader in the industrial services business."

Subject to regulatory approvals and consultation procedures with Stork’s work council, the transaction is planned to be competed in the first half of 2016.

Upon completion of deal, Fluor will combine its Operations & Maintenance organization with Stork while Stork CEO Arnold Steenbakker will lead the combined group.

The combined group, which will be branded as Stork and headquartered in the Netherlands, will have a about 19,000 employees.

The acquisition is also expected to provide synergies including increased revenues from cross-selling and expansion into new markets for Flour.

Image: Stork provides asset integrity services for large existing industrial facilities in the oil and gas market among others. Photo: courtesy of STORK.