A subsidiary of the Denis O’Brien-owned Siteserv has landed a multi-million pound contract with UK port operator Babcock.
The company’s industrial services division, Deborah Services Limited (DSL), has signed a five-year deal worth £150 million (€205 million) to service five Babcock-run ports in England and Scotland.
The deal comes as Siteserv, which was sold by Irish Bank Resolution Corporation (IBRC) to Mr O’Brien for €45 million in 2012, announced plans to rebrand as Actavo from next month.
The utilities support group has been at the centre of controversy over the sale of IBRC loans.
The UK deal will see its DLS subsidiary supply a range of industrial services to Babcock ports at Appledore and Devonport in England, and Rosyth, Faslane and Coulport in Scotland.
Siteserv chief executive Sean Corkery described the deal as a “milestone contract”, which marked a transformation for its UK business.
“As a blue chip PLC, Babcock is a prime customer and we look forward to partnering with them on this and future projects,” he said.
The contract will see an additional 800 staff added to DSL’s workforce. It will also make DSL the largest supplier of industrial services to the UK’s marine sector.
DSL’s managing director Chris Foulkes said: “This is the biggest contract ever awarded to an industrial services provider in the UK within this sector”.
A spokesperson for Babcock International Group said: “DSL’s experience across multiple sectors, relentless focus on safety and commitment to innovation mean they are the right partner for Babcock International Group now and into the future.”
In a recent interview, Mr Corkery said Siteserv was targeting €1 billion in annual sales by 2020, and forecast revenues of €400 million this year, equating to a growth rate of 20-30 per cent.
He also signalled the company may eventually seek to finance its expansion through a stock market listing.
Siteserv, which employs 4,700 staff in Ireland and Britain, acquired DSL in 2008 for €64.8 million.
DSL, along with Siteserv’s civil engineering arm Sierra, form the main plank of Siteserv’s business, generating almost three quarters of the company’s revenue.
The controversy surrounding the sale of Siteserv to Mr O’Brien and the firm’s subsequent contract to install meters for Irish Water has prompted a review of of the sale of Siteserv and other IBRC transactions.
The Commission of Inquiry into transactions into IBRC, which the Government set up in wake of controversies relating to asset sales before the bank was liquidated, is due to deliver its findings before Christmas.
