Dubai: The UAE’s construction sector is closing the year with a major takeover, after ALEC Engineering and Contracting buys Target Engineering Construction Co.. Subsequent to the buy, the combined turnover will be ‘close to $2 billion’.
ALEC is owned by the Investment Corporation of Dubai. “For the Investment Corporation of Dubai, this move enables us to align strongly with the UAE government’s ongoing investment into developing world-class critical infrastructure facilities that support its ambition of being an advanced, sustainable economy,” said Khalifa Al Daboos, Deputy CEO at ICD.
With the deal, ALEC will add the ‘significant assets held by Target Engineering, including a 11,000 strong workforce, over 30 marine vessels, and 52,000 square metres of ‘API/ASME-certified fabrication facilities’. The transaction also covers Target’s controlling stake in IDROTEC SRL, an Italian marine design engineering firm.
Target Engineering will continue to operate independently, while ‘drawing on the skills and resources of the broader ALEC Group’. Last year too, ALEC had been in the M&A space, by entering an alliance with BUTEC.
We will now benefit from the strong financial position and world-class leadership and project execution capabilities of ALEC. This will fuel our ambitious growth plans across the Middle East as we can now deliver best-of-breed EPC and specialist marine services to an even broader segment of high-profile regional entities.
Founded in 1975, Target operates four specialised divisions — mechanical oil and gas, electrical, civil, and marine. Projects it has been associated with include work at ENEC's Barakah Nuclear Power Plant, ADNOC Gas Processing's Ruwais LNG Terminal, Saudi Aramco's Abqiq plant, and ENOC's Jebal Ali Refinery expansion.
Current projects include Borouge 4 and Delma B in joint venture for ADNOC, and IGDC for ADGAS.
“Bringing Target Engineering within our fold is a move that plays to both these objectives as their specialist skillsets in oil and gas, energy — including renewables, marine, and industrial construction — perfectly augment ALEC’s own capabilities,” said Kez Taylor, CEO of ALEC. “This will enable us to present an even stronger joint value proposition to customers.”