UAE's Alec Group furthers regional expansion through acquisition UAE's Alec Group furthers regional expansion through acquisition
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UAE’s Alec Group furthers regional expansion through acquisition

UAE’s Alec Group furthers regional expansion through acquisition

The firm has signed a share purchase agreement to acquire Target Engineering Construction Company

Divsha Bhat
Alec

Alec Engineering and Contracting, a part of the Investment Corporation of Dubai (ICD), has signed a share purchase agreement to acquire Target Engineering Construction Company.

Founded in 1975, Target Engineering operates through four specialised divisions — mechanical oil and gas, electrical, civil and marine.

By acquiring 100 per cent of the company, Alec will now enhance its resources with the significant assets held by Target Engineering, including its 11,000 strong workforce, over 30 marine vessels and 52,000 sqm of API/ASME-certified fabrication facilities.

Additionally, this includes Target’s controlling stake in IDROTEC srl, an Italian specialised marine design engineering firm. With this agreement, the companies will have a joint turnover of close to $2bn.

“This acquisition further advances Alec’s position in the regional construction industry while simultaneously enabling it to enter and fast-track its strategy of becoming a key player in the Middle East oil and gas, and energy and renewables sectors by drawing from the extensive expertise, and resources that Target Engineering has developed over its celebrated 40-year history,” said Khalifa Al Daboos, deputy CEO at ICD.

“Alec has an established track record of continuously enhancing the skills and capabilities within the organisation, and leveraging this expertise to enter into, and become a market leader in new market segments. Bringing Target Engineering within our fold is a move that plays to both these objectives as their specialist skillsets in oil and gas, and energy — including renewables, marine and industrial construction — perfectly augment Alec’s own capabilities. This will enable us to present an even stronger joint value proposition to customers,” said Kez Taylor, CEO at Alec.

“Today’s announcement is a landmark event in the over four-decade long journey of our company”, said Chaouci Yassine, CEO of Target Engineering.

“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.”

Read: UAE’s Alec launches subsidiary to revamp data centre construction across MENA

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