Maritime classification society and technical services provider Lloyd's Register Group (LR) has agreed to sell its Energy business unit to Inspirit Capital, a London-based investment firm.
LR said that the agreement followed a review of LR’s business portfolio and strategic direction. LR’s Energy business was founded in the 1930s following LR’s diversification from marine assets into the oil and gas industry.
According to the company, the divestment will lead to the creation of a new engineering and technical consultancy offering specialist asset performance, risk management and project management expertise across complex industrial assets, the energy transition, and rail infrastructure.
The transaction is expected to complete on or before October 31, 2020 and is not subject to any formal regulatory or other approvals.
LR’s Chief Executive Officer, Alastair Marsh said the divestment was the best option to "realize the long-term growth potential of our Energy business."
Marsh said: "LR Energy offers world-class engineering solutions across the sector, and the partnership with Inspirit provides them with further support and investment to underpin their growth objectives. The LR Group remains committed to the energy sector, continuing to support our clients through our offshore compliance, digital products, and inspection services businesses, in collaboration with our former LR Energy colleagues where appropriate.”
David Clark, LR’s Energy Director, who will lead the new company, said: "This is an exciting new chapter for us, which supports our mission to help clients tackle complexity head on. This announcement provides us with a partner to build on our existing track record and unlock our growth potential as a standalone business, offering our full suite of technical, regulatory and operational expertise."
"The increasing complexity we are seeing, with the transition and restructuring of the energy markets and the impact of digital transformation across our global energy, complex industrial and transport customers, means our solutions are more relevant than ever. We look forward to working with the Inspirit team to deliver on our ambitions," Clark said.
Will Stamp, founding partner at Inspirit Capital said: “LR’s Energy division has an excellent reputation internationally and we are proud to be supporting the next phase in the development of the business. We are backing a world-class team and look forward to building a valuable standalone organization in a market undergoing dramatic change.”
Offshore Engineer reached out to LR, seeking info on the financial side of the deal, as well as on the status of the employees of the LR Energy business.
A spokesperson said the company wouldn't disclose details of the financials.
As for the employees, the LR spokesperson said: "650 people work for the energy business. We anticipate that the vast majority of colleagues will move into the new company."