Murray & Roberts acquires JJ White to further its North America expansion

SOUTH AFRICA – Engineering and mining contractor Murray & Roberts Holdings (M&R) is acquiring US multi-trade contractor and engineering firm JJ White Incorporated for US$28.25 million as part of its strategy to diversify and expand the services of its energy, resources, and infrastructure business platform in North America.

M&R subsidiary, Clough North America Holding, is acquiring all the shares in JJ White from James White IV and Trusts.

“The acquisition builds an immediate robust entry into new territories and new markets and will leverage JJ White’s existing customer base to expand Clough’s engineering, procurement and construction services and footprint across the US,” M&R said in a press statement.

JJ White is a private, fourth-generation multi-trade engineering and contracting business, headquartered in Philadelphia, Pennsylvania.

“It has a tradition of excellence in the Mid-Atlantic, Mid-Western, and New England construction industries dating back to its founding in 1920, and the company is licensed to deliver its services in 22 states,” M&R said.

It specializes in industrial maintenance and related construction services that cover mechanical and electrical disciplines.

“The acquisition builds an immediate robust entry into new territories and new markets and will leverage JJ White’s existing customer base to expand Clough’s engineering, procurement and construction services and footprint across the US”

The company has an in-house fabrication facility, and its capability includes the design and fabrication of American Petroleum Institute 650 oil storage tanks.

M&R said the strategy for the energy, resources and infrastructure platform was similar to the recent market sector diversification in the Asia-Pacific region, which had seen significant order book growth over the past three years.

“This investment presents significant growth potential and opportunity for market share expansion and is expected to provide strong returns,” M&R said.

The deal would be funded through existing cash resources.

The value of net assets being acquired is US$8.5 million of net working capital, US$3.7 million of fixed assets, and US$16 million of intangibles.

An average four-year earnings before interest, tax, depreciation, and amortization of US$5.1 million to December 31, 2020, on a normalized basis and adjusted for one-off, non-recurring items, was attributable to the net assets being acquired.

Additional reporting from IOL News.

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