TULSA — Matrix Service Co. has agreed to pay $80.3 million to pay Kvaerner North American Construction Ltd. and most of its assets, the company announced Monday.
Matrix CEO John Hewitt said Kvaerner has 35 years of construction experience “as a premier provider of maintenance and capital construction services to North American power generation, integrated iron and steel, and industrial process facilities.”
Kvaerner will be renamed Matrix North American Construction, with its current management intact, once the deal closes later this month. The company has about 200 employees in the U.S. and Canada.
The Norway-based company opted to sell its North American operations to focus on its upstream oil and natural gas operations. Those operations generated revenue of about $280 million in 2012.
The deal gives Matrix a foothold in the major Marcellus and Utica shale basins.
“The transaction expands the geographic footprint of our leading operations in the U.S. and Canada, with major operations in the Midwestern United States and Ontario, Canada,” Hewitt said Monday in a conference call with analysts. “Kvaerner has a strong market presence in our electrical infrastructure, industrial and oil, gas and chemical segments.”
Kevin S. Cavanah, Matrix's chief financial officer, said the company can afford to finance the deal with cash on hand, but it expects to borrow some money to close the Kvaerner acquisition.
The deal is expected to add value to Matrix within a year, he said.