Ferrovial sells Timec Oil & Gas (Ferrovial Services) in the US to Architect Equity14 November 2021
The deal furthers Ferrovial’s strategy of focusing on the development, construction and management of sustainable infrastructure.
Timec provides services to the Oil&Gas sector in the US
The rest of Ferrovial’s Services division in United Kingdom and Chile is still available for sale.
Ferrovial has reached an agreement to sell Timec Oil & Gas in United States to a fund managed by Architect Equity Holdings, as part of the divestment of Ferrovial Services. Timec is the company which provides services to the Oil & Gas sector in the US. Completion of the deal is expected to take place at November 30th.
Timec, which reported revenues of 165 million dollars in 2020, has close to 50 years of experience providing the full spectrum of mechanical, specialty welding, high-temperature repair and inspection and upstream oil-field services through nested maintenance, turnaround or construction services. Headquartered in Texas, has continuous operating bases in California, the Pacific Northwest, Mid-Continent, Rocky Mountains and the Gulf Coast, and has maintained a market-leading position as a turnkey, full-service general contractor.
Architect Equity is an evergreen investment firm fund focused on acquiring and managing businesses in the lower middle market across multiple sectors in North America. The firm pursues companies that exhibit the opportunity for improvement and growth and can benefit from Architect’s capital base, industry relationships and operational resources. Architect Equity is comprised of a team of investors and operators that have over 100 years of combined experience in successfully acquiring and managing companies across a range of industries and market cycles.
Step forward in the divestment of Ferrovial Services
The sale of Timec in the US is another step in the process of divesting Ferrovial Services, following the sale of the Environmental and Infrastructure Services business in Spain, of Broadspectrum’s operations in Australia and New Zealand, and of the municipal cleaning contracts in the UK. Divestment of the other Ferrovial Services businesses in United Kingdom and Chile is ongoing.
Ferrovial conducted a strategic review of all its businesses aimed at focusing the company’s future on infrastructure, the prime source of value and returns for its shareholders. As a result, it classified all its Services operations as “available for sale”. To that same end, the company adopted Horizon 24, a strategy for the period 2020-2024 that prioritizes infrastructure development, construction and management in parallel with businesses in the areas of mobility, water and the energy transition. The plan pursues 11% annual EBITDA growth based on the pursuit of excellence, sustainability, innovation, and efficiency, and the selection of businesses and markets.