Clough makes $37m acquisition

Engineering and construction contractor Clough has expanded its North American presence by acquiring privately owned company J.J. White Incorporated.

Founded in 1920, JJ White is a fourth-generation engineering and contracting business headquartered in Philadelphia.

It specializes in industrial maintenance and related construction services and covers a full range of mechanical and electrical disciplines.

Clough’s parent company – South Africa’s Murray & Roberts – said the maximum total consideration was $US28.25 million ($A37.6 million).

It will fund the acquisition utilizing existing cash resources.

Clough chief executive Peter Bennett said JJ White was a well-known industry contractor with an impressive and proven track record.

“The acquisition builds an immediate, robust entry into new territories and new markets and Clough will leverage JJ White’s existing customer base to expand its services and footprint across the USA,” Mr Bennett said.

JJ White adds to several other businesses Clough has in North America, notably engineering consultancies CH:IV in Houston and Enercore in Calgary along with Houston-based project delivery company Saulsbury, which it acquired in 2019 for $US5.2 million.

Clough’s Adam Stashick, formerly Executive Vice President of Strategy and Development, will take over operations as President for JJ White.

He will report directly to Martin Siddle, Executive Vice President for Clough in North America, and will be a member of Clough’s North America Leadership Team.

Murray & Roberts group chief executive Henry Laas said the acquisition was part of the group’s strategy to diversify and expand its Energy, Resources & Infrastructure business platform in North America.

In the past financial year, Murray & Roberts derived approximately 80 per cent of its revenue from its international operations.

“The Group’s international market sectors are expected to continue to benefit from dedicated and extensive stimulus earmarked for a post-pandemic infrastructure-led economic recovery,” Mr Laas said.