Fast-growing EB is sold to Dutch firm

Mar 11 2008 by Chris Knox, The Journal

THE North East’s engineering industry has been given a big shot in the arm with the purchase of one of its fastest growing firms.

The Engineering Business (EB), based at Riding Mill near Hexham, expects to more than quadruple its turnover to around £100m within four years after being bought by Dutch shipbuilder IHC Merwede in a deal believed to be worth around £30m.

The purchase will see IHC Merwede sail a number of its ships to Tyneside to be fitted with EB’s bespoke engineering equipment and will see the Northumberland firm, which has sites at Stocksfield and Wallsend, pass on much of the work to its 100-plus regional sub-contractors, which already handle around half of its £60m order book.

The deal is also expected to see EB double its 150-strong workforce in two years as well as extend its manufacturing facilities at the former Amec yard on the Tyne and its 6,000 sq metre workshop complex at Hadrian Riverside, Wallsend.

In addition, 70 of the firm’s staff are to share in 20% of the proceeds of the deal as part of an internal share option scheme. The 11-year old firm, which will now be known as IHC The Engineering Business, specialises in designing, building and supplying a wide range of products for the offshore oil and gas, submarine, defence and renewable energy industries.

EB managing director Tony Trapp said: “This deal is not only good news for us, but is also good news for the region’s shipping and engineering sectors. EB can continue its rapid growth, providing long term security for our dynamic team as well as significant benefits for the North East through our extensive supply chain.

“We could not have achieved what we have done without the input of our staff.”

EB is currently involved in a number of ongoing contracts, including the manufacture of a 7,000 tonne cable carousel for a wind farm off the coast of Solway Firth.

Govert Hamers, president of IHC Merwede, said: “This is a great deal on so many fronts. EB delivers high quality bespoke vessel equipment and bringing our two companies together is a perfect match and means that we can provide fully integrated vessels with state of the art technology from a single supplier.”