PEC acquires 51% of Major Insulation & Links stakes

Acquisition provide PEC hot and cold thermal insulation, sound proofing, refractory and fire proofing works services.

PEC Ltd. (“PEC”, and together with its subsidiaries, associated companies and joint venture company, the “Group”), a homegrown plant and terminal engineering specialist which provides project works and maintenance services to the oil and gas, petrochemical, oil and chemical terminal and pharmaceutical industries in Asia and the Middle East, on Monday announced that it has entered into a sale and purchase agreement to acquire 51% of Major Insulation & Links (MIL) Marketing Pte Ltd (“MIL”),  a Singapore-based specialist service provider of hot and cold thermal insulation, sound proofing, refractory and fire proofing works in the oil and gas industry, for approximately S$3.0 million, according to a PEC report.

Commenting on the acquisition, Mr Robert Dompeling, Group Chief Executive Officer said, “Having worked with MIL for several years as a partner on numerous projects, we are confident of the outstanding quality of MIL’s management and service offerings.  MIL will be a valuable addition to our business, further enhancing and expanding our in-house capabilities and overall value proposition to our customers.”

The acquisition is funded using the proceeds from the Company’s initial public offering. The Acquisition is not expected to have any material impact on the net earnings per share or the net tangible assets per share of the Company for the financial year ending 30 June 2011.