Fluor buys Stork

Engineering company Fluor has acquired Netherland’s-based manufacturing and service provider Stork B.V. for €695 million (A$1.05 billion).

The New York-listed Fluor announced its acquisition to the market on December 7, 2015.

“The acquisition of Stork is consistent with Fluor’s goal to further enhance our integrated solutions capabilities in thoughtful, strategic ways that will increase the value we deliver to our clients and shareholders,” Fluor chairman and chief executive David Seaton said.

“We are pleased to welcome Stork’s talented workforce of more than 15,000 employees, which will provide us with additional flexibility and capacity to increase our maintenance and direct construction activities.”

Fluor Corporation, founded in 1912, is a multinational engineering and construction business based in Irving, Texas. It works in the energy, chemical, industrial and infrastructure sectors, among others.

Stork, founded in 1868, manufactures for a number of heavy industries including aerospace and defence. Its subsidiary Stork Technical Services provides services for installations and machines in the industrial sector.

Seaton said the Dutch company “is highly complementary to Fluor as it gives both businesses the opportunity to market diverse services and capabilities to new customers and across new geographies”.

“Stork’s business is largely driven by ongoing operating budgets and is therefore less impacted by volatile commodity prices,” Seaton added. “In addition, Stork’s continuous site presence will help us improve our ability to meet our customers’ needs throughout the full lifecycle of an operating plant, and provide Fluor with an ongoing earnings stream and robust growth opportunities.”

Stork CEO Arnold Steenbakker was equally positive about the move.

“We are very proud that a world-class company like Fluor recognizes Stork’s strong reputation, capable workforce and performance as a global industrial services provider,” Steenbakker said.

“The combination will create new opportunities to expand our global footprint and deepen the product and services offering to our customers.

“Stork’s activities are complementary to those of Fluor and the combination will create a global leader in the industrial services business.”

Fluor plans to combine its Operations & Maintenance business with Stork, with Steenbakker set to lead the combined group, reporting directly to Seaton.

The combined group, branded Stork and headquartered in the Netherlands, will have an annual turnover of approximately €2.1 billion (A$3.2 billion), and a total of approximately 19,000 employees, Fluor said.