Dyna-Mac Holdings NO4 has acquired 100% of the total issued and paid-up share capital of Exterran Offshore for US$8.25 million ($10.9 million)
On Jan 3, the company announced that it had signed a share purchase agreement for Exterran, with the latter set to be integrated into the group and renamed to reflect its new Dyna-Mac branding.
Through the acquisition, Dyna-Mac will secure access to Exterran’s yard facilities of some 4.5 hectares along Gul Road, which will provide additional fabrication capacity. The company says this will enable it to undertake larger projects, more complex modular construction work, as well as those involving hydrogen and ammonia piping.
The additional workshops would also allow Dyna-Mac to consolidate piping fabrication, reducing the need for outsourcing and rentals, thereby lowering costs, boosting productivity and improving overall product quality.
The new site, whose lease expires in 2030, is located beside Dyna-Mac’s main module assembly facility at Gul Road, and complements its ongoing strategic reorganisation of its facilities in the area.
This acquisition would also extend the company’s projected total waterfront length along Gul Road to more than 680 metres. Dyna-Mac notes that the additional seafront will allow for the improvement of its current method of construction via split modules, shortening time to deliver projects, as well as providing an option to work on cable manufacturing and modules for the pharmaceutical sector.
See also: Vitasoy ‘open to collaboration’ as speculation mounts over Philip Ng takeover
CEO Lim Ah Cheng says the strategic acquisition underscores Dyna-Mac’s commitment to opportunistic value creation, and creates a “multitude of synergies and opportunities” for the company. “This milestone not only reflects our dedication to growth and expansion, but also sets us up for sustained success and strengthens our position in the industry. We look forward to driving innovation, integrating the new facility’s strengths seamlessly into our operations, and delivering even greater value to all our stakeholders.”
Shares in Dyna-Mac closed 2 cents lower or 5.8% down at 32.5 cents on Jan 3.
