Murphy has announced the sale of its 50% stake in MPC to Viburnum Funds/SCF Partners.
In 2010 Murphy identified Australia as a potential growth opportunity and in 2011 committed to a 50% investment in Pipe and Civil to form MPC. Murphy’s track record in constructing large scale oil and gas projects combined with Pipe and Civil’s innovative solutions for projects in the coal seam gas market enabled MPC to become one of Australia’s foremost contractors in the natural resources, mining and energy sectors.
The sale realises a multiple return on the initial investment. The experience in Australia has provided Murphy with an excellent opportunity to develop its strategy for entering international markets. Following the success of MPC, Murphy remains positive about markets in both Australia and New Zealand, and will in the future pursue opportunities utilising expertise in other sectors.
Proceeds from the sale, together with already strong cash reserves, will be reinvested to further develop the Murphy business to deliver its ambitious 10 year plan and grow to £2 billion in revenue by 2025. This will be done by investing in capabilities that add real value for clients.
Murphy’s chief executive officer, Steve Hollingshead, said: “The success of MPC shows just what a contribution Murphy’s expertise and ethos can make to a successful partnership. We leave behind a strong legacy that we are proud to have been part of and we are confident that our friends and former colleagues remaining with MPC are well-placed to continue to deliver for their customers. We wish them every success.”
“Delivering world class infrastructure is what we do well, and while the time was right for us to sell our stake in MPC, we are now looking forward to future investments. We are actively pursuing investments in development, infrastructure assets, new product launches and acquisitions, which complement our existing areas of expertise.”
Murphy continues to invest in growing its oil and gas operations in the UK and internationally, working both independently and with quality partners. Launched in 2015, its Canadian joint venture – Surerus Murphy – goes from strength to strength. It was recently chosen to deliver 185 km of the CAN$7.6 billion Kinder Morgan Trans Mountain pipeline project, one of the largest ever pipeline projects in Canada.
Many Murphy employees joined MPC, with some now settled permanently in Australia, as the business grew to employ over 450 people.
Jonathan Wright, Murphy’s people director, said: “It’s extremely rewarding to have seen our people building their own fulfilling careers and their contribution to securing MPC’s enviable reputation for safety, customer service and innovation.”
Read the article online at: https://www.worldpipelines.com/business-news/19092017/murphy-sells-50-share-of-mpc/