KEC International to acquire Spur Infrastructure for Rs 62cr
KEC International Ltd. has agreed to acquire Spur Infrastructure, an Ahmedabad-based engineering, procurement and construction (EPC) company in the oil and gas pipelines sector, for INR 62 crores.
The acquisition is anticipated to close within 60 days from the date of agreement, said KEC International, which is an Indian construction engineering company owned by RPG Group.
Incorporated in 2016, Spur Infrastructure is engaged in laying cross country oil and gas pipelines and city gas distribution networks.
In the past three years, the pipeline EPC company had an annual revenue of more than INR 100 crores. Spur Infrastructure has an order book of around INR 600 crores, made up of cross-country pipelines and city gas distribution network projects from marquee customers.
KEC International said that the acquisition aligns with its strategy of diversifying into adjacent areas of growth.
The company said that its project management capabilities and vast experience of undertaking cross-country linear projects and managing right of way (RoW) in combination with Spur Infrastructure’s technical expertise, experienced manpower, and pertinent pre-qualifications will enable the former to capture the lucrative growth opportunities in the oil and gas cross-country pipelines EPC sector in India and also global markets.
Vimal Kejriwal — MD and CEO of KEC International said: “We launched the oil and gas pipelines EPC business in line with the Government’s thrust in the sector and our strategy to diversify the business portfolio into adjacencies. This acquisition will enable us to accelerate growth in this sector and establish this business as one of our key growth drivers going forward.”