Wood Group has acquired CEC Controls Company, Inc. (CEC Controls), a management-owned designer and builder of industrial & process control systems primarily in the automotive manufacturing industry, for an initial consideration of $44m payable in cash at closing with a further total fixed deferred consideration of $15m payable in cash over the next three years.
Established in 1966, CEC Controls is headquartered near Detroit. The company employs more than 220 personnel across its 12 North American offices and office in Romania. Further deepening Wood Group’s automation and control capabilities, this follows the acquisition of the Automated Technology Group (ATG), one of the UK’s largest independent suppliers of control and power solutions for industrial automation, in September 2015.
CEC Controls’ current clients include Ford, GM and Fiat-Chrysler and the business will continue to be led by its existing management team. CEC Controls currently has gross assets of $34m and generated an EBITA of $9.6m in 2016.
Robin Watson, Wood Group’s chief executive said: “Bringing 50 years of expertise in delivering services to the automotive sector, CEC Controls significantly complements and strengthens the innovative technical solutions we provide to clients within automation and control.
“The acquisition supports the geographical broadening of our footprint within the automotive sector particularly in the US; deepening our presence in the key automotive hub of Detroit, where CEC Controls is headquartered.
“It also provides us the opportunity to further enhance the industrial process & control capabilities we offer to this industry and adjacent sectors including aerospace, logistics, water, and pharmaceuticals.”
President of CEC Controls, Robert Scheper said: “Wood Group’s global footprint and breadth of capabilities offers us the opportunity to enhance our client solutions and access significant international growth opportunities.
“We believe our extensive expertise in the automotive manufacturing industry, married with Wood Group’s two decades of experience in automation and control, creates a powerful solution-driven service offering for clients.”