ENGlobal Corporation (NASDAQ:ENG)
, a leading provider of engineering and related project services, and
Control Dynamics International, LP (“CDI”)
, an industry leader in advanced control solutions, announced today that ENGlobal’s Automation segment has acquired selected assets of CDI, a privately-held automation firm based in Houston, Texas. CDI designs and manufactures industrial automation control systems primarily for the upstream energy industry and has annual revenues of approximately $5.0 million.
Under terms of the agreement, ENGlobal will not assume any CDI debt, nor will it be required to issue any stock as consideration for the acquired assets. The transaction is expected to be immediately accretive. Certain key members of CDI’s management team have entered into employment agreements with ENGlobal. Further terms of the transaction were not disclosed.
The acquisition of CDI gives ENGlobal a strategic entry into the upstream energy sector. CDI offers certain proprietary products, such as the Dolphin™ Universal Master Control Station (MCS), which can be quickly configured to most subsea control projects. CDI also has expertise in blowout preventer control systems, supervisory control and data acquisition systems (SCADA), and Floating Production Storage and Offloading (FPSO) turret override protection systems. For efficiencies, ENGlobal plans to relocate its Automation personnel from its North Houston headquarters to CDI’s 24,000 square foot facility nearby.
“Much of our current project work is in the upstream sector, which makes CDI a natural fit with ENGlobal’s suite of services,” said Mr. Anthony George, Chief Executive Officer of CDI. “ENGlobal’s financial resources should provide us with larger projects and cross-selling opportunities, thus spurring our growth. We strongly believe that our clients will greatly benefit from our combined capabilities.”
Ms. Shelly D. Leedy, P.E., President of ENGlobal Automation Group, Inc., added, “This transaction presents tremendous synergies to both companies and expands ENGlobal’s market presence into the upstream vertical. Our combined operations offer a portfolio of high value engineering and related project services to a very broad spectrum of the energy industry. I look forward to integrating CDI into our existing operations and, on behalf of TEAM ENGlobal, we welcome CDI’s dedicated employees to our family.”