Engineering and construction group Murray & Roberts’s (M&R’s) Clough North America subsidiary has acquired JJ White Incorporated in a transaction valued at up to $28.2-million.

The group will fund the acquisition using its existing cash resources.

JJ White is a private, fourth-generation multitrade engineering and contracting business, headquartered in Pennsylvania, in the US.

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

M&R group CEO Henry Laas said on October 12 that the acquisition was part of the group’s strategy to diversify and expand the service offering of its energy, resources and infrastructure business platform in North America, similar to its recent market sector diversification in the Asia-Pacific region, which has seen significant order book growth over the past three years.

“This investment presents strong growth potential and opportunity for market share expansion and is expected to provide good returns,” he commented.

M&R’s energy, resources and infrastructure business platform CEO Peter Bennett added that 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 US”.

Following the completion of the acquisition, Clough’s Adam Stashick, formerly executive VP of strategy and development, will take over operations as president of JJ White.

“M&R is today a purpose-built group, ready to capitalise on improved prospects in our two international business platforms. Implementation of the group’s strategy over the past few years culminated in continued order book growth and, in the 2021 financial year, the group derived [about] 80% of its revenue from its international operations,” said Laas.

He added that 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. 

The effective date of the transaction is subject to the fulfilment of various conditions precedent but is required to be before the end of October.