French construction and scaffolding equipment giant Altrad has agreed to buy UK industrial services company Cape Plc for about £332.2 million in cash.
Cape employs 16,000 and provides a multi‑disciplinary service offering including the traditional services of access, insulation, mechanical and specialist coatings and fireproofing. In 2016, Cape reported revenue of £863.5m and an annual pre-tax loss of £43.6m with UK margins adversely impacted by weakness in the oil price and reduced demand from the coal-fired power generation market.
Altrad has a global turnover of about €2.3bn (£2bn) and controls a significant part of UK access, hire and scaffolding business, including Beaver, Generation, Hertel, NSG and Trad Group.
Altrad Group chairman Mohed Altrad said: “Altrad and Cape have a strong complementary geographic and product mix enabling the creation of a multi-disciplinary industrial services leader in key markets around the world.”