BG plc has entered into detailed negotiations to sell
its Pipeline Integrity International (PII) business,
whose headquarters are at Cramlington, Northumberland,
to a company to be formed by The Private Equity Division
of Mercury Asset Management plc.
The proposed sale is subject to further discussion and
agreement between the parties. All existing employees
would transfer to the new owner.
The sale would enable PII's new owners to develop the
business's pipeline inspection operations which no longer
form part of the core activities of BG plc. PII has net
assets of approximately 40 million.
Note to editors
Pipeline Integrity International (PII) provides high
resolution inspection and maintenance services for gas,
oil and chemical pipelines. It generates 90 per cent
of its around 60 million annual turnover from outside
the UK and works in more than 30 countries.
PII employs 320 people at its Cramlington headquarters,
and approximately 100 further staff at centres including
Chesterfield, Arbroath, Ambergate and Houston, Texas.
BG plc comprises Transco, the UK gas transmission network;
international exploration and production activities;
and investments in UK and overseas downstream energy
projects.
Mercury Asset Management plc is one of the leading providers
of private equity capital in the UK and Ireland. The
company has led the buy-outs of NTL, Belfast International
Airport and British Aluminium. Other major deals in the
last four months include Sitex Group Holdings, Lloyds
Veterinary Division and NewWorld Payphones. Mercury Asset
Management plc is regulated by IMRO. |