EXOVA, the testing business, has continued its expansion by acquiring a Singapore-based firm that serves the construction sector in what looks like a bolt-on deal as it grapples with the fallout from the crude price slump.
The Edinburgh-based firm said the acquisition of Admaterials would give it expertise in the construction sector in Singapore and business in markets such as chemical and environmental testing.
The price of the deal was not disclosed. However Exova noted that Admaterials has annual revenues in the region of £3.5m. Exova had £275m turnover in 2014.
Chief executive Ian El-Mokadem said: “This move underlines our strategy of providing more technically demanding services and extending the reach of our business through carefully considered strategic acquisitions.”
Exova has been hit by the downturn in the oil and gas sector, which has followed the slump in the crude price since 2014.
The company tests metals used offshore.
In August Mr El-Mokadem it was facing tough conditions in the North Sea.
Exova appointed oil services veteran Allister Langlands as chairman that month reflecting the importance of the energy market to the firm.
The Admaterials acquisition is the fourth that Exova has made in the past year.
Last month Exova completed bolt on acquisitions involving two firms based in England that provide services such as environmental monitoring and materials testing for firms in industries including food production.
In May Exova bought the Buckinghamshire BM Trada building products testing business for £22m.
The company has been active in Singapore since before it was bought out of Bodycote in 2008.
Shares in London Stock Exchange-listed Exova closed up 1p at 129.75p.
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