Lloyd’s Register Group (LR) has entered into a deal to sell its energy business unit to Inspirit Capital, a London-based investment firm.
LR said the agreement follows a comprehensive review of LR’s business portfolio and strategic direction.
As disclosed, the deal will create 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.
“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,” LR’s Chief Executive Officer, Alastair Marsh said.
“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 was an exciting new chapter for the company.
“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,” he added.
The transaction is expected to complete on or before October 31st, 2020 and is not subject to any formal regulatory or other approvals.
LR’s Energy business was founded in the 1930s following LR’s diversification from marine assets into the oil and gas industry.
Since 2005, the business entered into several strategic acquisitions including Capstone, ODS, Human Engineering, Celerity3, ModuSpec, Scandpower and WEST Engineering.
The acquisition of Senergy in 2013 expanded LR Energy’s portfolio, covering the full energy value chain and life cycle.