UAE HEADQUARTERED ALEC GROUP FURTHERS REGIONAL AND SECTORAL EXPANSION THROUGH ACQUISITION

Acquiring TARGET Engineering further strengthens ALEC’s established capabilities in marine and industrial construction while enabling the construction company to mark its entry into the Oil & Gas sector.

Dubai, United Arab Emirates – December 20, 2022 – ALEC Engineering and Contracting LLC (ALEC), a part of the Investment Corporation of Dubai (ICD), today announced that it has signed a share purchase agreement to acquire TARGET Engineering Construction Company LLC. With this agreement, the companies will have a joint turnover of close to USD 2 billion.

“This acquisition further advances ALEC’s position in the regional construction industry while simultaneously enabling it to enter and fast-track its strategy of becoming a key player in the Middle East Oil & Gas, and Energy and Renewables sectors by drawing from the extensive expertise, and resources that TARGET Engineering has developed over its celebrated 40-year history,” said Khalifa Al Daboos, Deputy CEO at ICD. “For the Investment Corporation of Dubai, this move enables us to align strongly with the UAE government’s ongoing investment into developing world-class critical infrastructure facilities that support its ambition of being an advanced, sustainable economy.”

Founded in 1975, TARGET Engineering operates through four specialised divisions — Mechanical Oil & Gas, Electrical, Civil, and Marine. The company’s customer base is comprised of leading Oil & Gas companies, major EPC (Engineering, procurement, and construction) contractors, government entities and property developers. Noteworthy projects that it has successfully completed include work at ENEC’s Barakah Nuclear Power Plant, ADNOC Gas Processing’s Ruwais LNG Terminal, Saudi Aramco’s Abqiq plant, and ENOC’s Jebal Ali Refinery expansion. Included are also TARGET Engineering’s current active projects including Borouge 4 and Delma B in joint venture for ADNOC, and IGDC for ADGAS.

By acquiring 100% of the company, ALEC will now enhance its resources with the significant assets held by TARGET Engineering, including its 11,000 strong workforce, over 30 marine vessels, and 52,000 sqm of API/ASME-certified fabrication facilities. Additionally, this includes TARGET’s controlling stake in IDROTEC srl, an Italian specialised marine design engineering firm renowned worldwide for its specialist marine, hydraulic and environmental design for the Oil & Gas sector and marine developments. That said, TARGET Engineering will continue to operate as an independent entity, while drawing on the skills and resources of the broader ALEC Group.

“ALEC has an established track record of continuously enhancing the skills and capabilities within the organisation, and leveraging this expertise to enter into, and become a market leader in new market segments. Bringing TARGET Engineering within our fold is a move that plays to both these objectives as their specialist skillsets in Oil & Gas, Energy — including renewables, marine, and industrial construction — perfectly augment ALEC’s own capabilities. This will enable us to present an even stronger joint value proposition to customers,” said Kez Taylor, CEO at ALEC.

“Today’s announcement is a landmark event in the over four-decade long journey of our company”, said Chaouci Yassine, CEO of TARGET Engineering. “We will now benefit from the strong financial position and world-class leadership and project execution capabilities of ALEC. This will fuel our ambitious growth plans across the Middle East as we can now deliver best-of-breed EPC and specialist marine services to an even broader segment of high-profile regional entities.”