Kent plc has signed a binding sale and purchase agreement to acquire Exceed (XCD) Holdings Limited, an expert in well management, subsurface and decommissioning engineering services. The acquisition represents Kent's strategic move into the fast-developing international decommissioning market, realizing its ambition to be a full-service partner throughout the energy lifecycle, from late-life operations right through to safe and successful decommissioning of customers' assets.
Exceed, based in Aberdeen with operations in over 40 nations, has been working on complex offshore well projects for two decades, having drilled over 70 wells and decommissioned over 150 to date. One of just three UK Well Operators licensed, and world-famous for its vast technical expertise and high-calibre client list featuring leading international, national and independent energy companies, it is the first choice partner for some of the world's largest energy producers.
Increasing global capabilities
The deal places Kent at the head of a market that is expected to double in the next ten years with global offshore decommissioning expenditure poised to increase from $8 billion to $16 billion by 2035. Exceed's established delivery platform and outstanding reputation will be married with Kent's international platform and project execution capability to address increasing demand for compliant, cost-efficient and safe end-of-life solutions for oil and gas assets.
The deal also releases significant opportunities for energy transition. Exceed is already diverting reservoirs to hydrogen storage and carbon capture schemes, and combined with Kent's prior experience in the business, will provide an unmatched package to the market.
Our Exceed acquisition is a milestone move into the future of sustainable energy operations," Kent CEO John Gilley stated. "Exceed's technical skills in well and reservoir management along with their reputation excellence in decommissioning is a match made to perfection with our vision of delivering full lifecycle service to our customers. We will be very well-positioned together to meet the industry's demand for energy security, net-zero legislations, and safe offshore assets retirement.".
Releasing mutual expansion
The transaction is providing substantial synergies to both firms. For Exceed, merging with Kent gives it a global presence in fact, a more comprehensive tier-one customer base, and balance-sheet size to pursue larger, more intricate scales of business in new jurisdictions. For Kent, the acquisition solidifies its leadership in decommissioning - an expanding business division with the world's management of matured offshore assets. Through the union of Exceed's standalone technical expertise with Kent's low-carbon engineering expertise and high-value consultancy skills, the merged business is positioned to deliver creative, sustainable solutions at every phase of the asset lifecycle.
"We've built Exceed over 20 years with a commitment to technical excellence, innovation and client trust," commented Ian Mills, Managing Director of Exceed. "Joining forces with Kent is the natural next step. It gives us the financial backing and global reach to scale our expertise to new markets and opportunities, while preserving the same culture, entrepreneurial spirit and values that define us."
The transaction will be completed later in the year.
The deal is Kent's second in the last few months, having ventured into the data center space with its Sudlows Consulting acquisition. Cumulatively, the transactions reflect Kent's move to diversify into high-growth infrastructure and energy sectors as well as solidify its position as a cutting-edge global engineering giant.