Lamprell plc, a provider of diversified engineering and contracting services to the onshore and offshore oil and gas and renewable energy industries, has completed the sale of one of its service businesses, International Inspection Services Ltd. (INSPEC), a UAE-based provider of nondestructive testing (NDT) and associated services to the energy industry, to Intertek Testing Services Holdings Ltd. for a total cash consideration of $66.2 million.
Lamprell will remain a significant customer of INSPEC, and, as part of the sale agreement, the company has also entered into a multi-year preferred supplier agreement with Intertek for the provision of services by INSPEC. This secures the supply of NDT services for Lamprell for the medium term.
Lamprell CEO James Moffat said, "Over the last 18 months, Lamprell has refocused on its core activities of newbuild rigs, newbuild construction, land rigs, and rig refurbishments. As a result, the Group has been actively pursuing options to dispose of certain of its service businesses and this disposal is a key part of that strategy. INSPEC is a good strategic and geographic fit for Intertek, and we look forward to continuing our working relationship."