Engineering firm agrees to pounds 18.6m takeover deal; in association with RBS.Byline: Christopher Knox TYNESIDE engineering firm Chieftain is poised for expansion after agreeing to be taken over by a Yorkshire rival for pounds 18.6m. Wakefield-based Redhall plans to invest in the successful Newcastle company and add to its 700-strong workforce with new contracts in the fast-growing oil and gas sector. Redhall, which has a pounds 80m turnover, says the acquisition of Chieftain, which saw sales surge 39% to pounds 46m last year, will allow it to grow the revenues of the larger company by pounds 20m to pounds 140m within a year. Chieftain's fast growth with contracts for oil and gas businesses had made it a prime target for Redhall, which hopes to bid for a number of high-profile contracts in the North East and Cumbria. Redhall chief executive David Jackson said: "We are delighted to announce the offer for Chieftain which should provide Redhall with complementary engineering and fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. capacity, a well-established engineering resources business and an entry into the marine outfitting business. "Chieftain has become one of the biggest companies to benefit from the North East's booming oil and gas industry. We will be looking to use this to increase our involvement in the sector as well as grow the facilities in Walker." Redhall said that it has already received 35% backing from Chieftain's shareholders and that it was confident of securing the remaining 16% needed to secure a successful takeover following a 60-day consultation. The firm is also looking to add to Chieftain's workforce through its involvement in new projects as well as bolster its own 1,000 staff, which are based around the country. Jackson is now hoping to use Chieftain's location in Newcastle and Middlesbrough to secure further oil and gas work with Billingham-based SeaDragon Offshore, which is currently involved in the pounds 300m development of three oil platforms to be based in the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east . He is also looking to land work with a BVT BVT Bouvet Island (ISO Country code) BVT Brevet BVT Bournville Village Trust (UK) BVT Build Verification Test (Software testing process) Surface Fleet project in Barrow, Cumbria, to build two new aircraft carriers for the Royal Navy worth around pounds 3bn. BVT, which a joint venture between BAE Systems and VT Group, has began work on the ships, named HMS Queen Elizabeth and HMS Prince of Wales Seven ships of the British Royal Navy have been named HMS Prince of Wales, after the Prince of Wales.
CHIEFTAIN'S HISTORY 1979: Incorporated 1988: Floated on now defunct unlisted securities market The Unlisted Securities Market (USM), which ran from 1980 to 1996, was a stock exchange set up by the London Stock Exchange. It served a market for shares of companies too small to qualify for a full listing; or which did not have the full three year trading history required by the 1994: Bought Newcastle-based engineer R Blackett Charlton 2004: Floated on Alternative Investment Market (AIM) 2005: Moved into mechanical services 2006: Purchased assets of Stockton valve repair firm Bringover Ltd |
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