Motherwell Bridge Announces Middle East Investment Deal

June 22, 2008

Motherwell Bridge Ltd, the Lanarkshire-based engineering contractor, is set to significantly strengthen its presence in the Middle East after announcing that it has completed an investment tie-up with a leading financial institution in Bahrain.

In a move that will underline Motherwell Bridge’s future commitment to the region, Kuwait Finance House (Bahrain) has completed the acquisition of a majority stake in the company following several months of negotiations.

Interest from the Middle East in the group’s activities has been growing steadily following the launch in 2007 of the new division Motherwell Bridge International Ltd.

Making the announcement, Hugh Hayes, chairman of Motherwell Bridge Ltd, said: “We increased our emphasis on the international business two years ago, and took the decision last year to split our engineering contracting business into two separate companies, one concentrating on the UK and one overseas.

“Although it is early days, we can see the momentum building in the region, and I won’t be surprised if within three years from now we are earning as much from outside the UK as we are from within. That is certainly our intention, and having a Middle Eastern-based majority shareholder can only help us achieve this goal.”

Mr Abdulhakeem Al Khayyat, CEO and Managing Director of Kuwait Finance House (Bahrain), said: “We are delighted to add Motherwell Bridge to our portfolio of investments. We are backing a proven management team which we believe is capable of delivering significant growth by acting as specialist engineering sub-contractors in the oil, gas & petrochemicals sector.

“In particular, the opportunity in the Middle East is significant and we will work with management by utilising our presence and network in the region to convert this opportunity into a reality. We are looking forward to what we believe will be an exciting time for the development of the business.”

Mr Hayes also confirmed JOHCM Private Equity, the private equity division of J O Hambro Capital Management Ltd that backed the management buyout of Motherwell Bridge in September 2006, no longer held any shares in the group.

Mr Hayes said: “Our tie-up with JOHCM Private Equity in 2006 gave us the umbrella under which we were able to divest our aerospace and inspection operations to allow us to concentrate on our engineering contracting activities. The sale of these operations, to management and to a trade buyer respectively, enabled us to push ahead with our plans and restructure the group earlier than anticipated.

“JOHCM Private Equity has now disposed of its investment completely, and I would like to thank the firm for its support during the last two years. Our partnership was a perfect example of how the right private equity partner can make all the difference to a company.”

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