June 2013
CONSTRUCTION WORLD
12
marketplace
Completing the puzzle
McNiff listed some of the reasons why Wor-
leyParsons approached Basil Read for the
acquisition of TWP.
“WorleyParsons is looking to establish a
strongMiningandMinerals capability outside
the key centres of Australia andCanada –TWP
has a strong base here in sub-Saharan Africa
which satisfies our desire to create a global
minerals, metals and chemicals hub in Africa,”
says McNiff. He adds that the acquisition
has added capabilities to WorleyParsons,
specifically in the underground mining area
and preciousmetals processing space, which
were capabilitiesWorleyParsons was keen to
add to its portfolio.
“TWP, in a broader sense, is a very well
managed business with strong project and
operational management and we saw that
as adding depth and breadth to the existing
WorleyParsons business here in South Africa.
This will help in the other sections that we
operate in – hydrocarbons, power and infra-
structure.” This will allow WorleyParsons to
access the broader resource sector in South
Africa and leverage the strong infrastructure
capabilities that it already has in its existing
South African business.“That was one of the
key reasons why we acquired the KV3 busi-
ness: we knew we had strong infrastructure
capabilities andgoing forwardwewere going
to target the resource sector – so this com-
pletes that part of the puzzle,”says McNiff.
“TWP has good relationships with exist-
ing clients and because of the work they
do in the sustaining capital market and the
mining industry, we saw this as a market
that we can expand. Sustaining capital for
our customers is a very important aspect
of WorleyParsons’s business, which we call
‘Improve’,”adds McNiff.
With the combined presence and capa-
bilities that WorleyParsons now has in South
Africa it can now offer customers the ability
to execute, on a world scale, mega-projects
while using South Africa as a springboard
into the rest of Africa. “This is going to
be a unique offering with the comple-
mentary skills and expertise from both
organisations – we will add value to
customers whowould otherwise be go-
ing tomore expensive parts of theworld
to get those skill sets,”explains McNiff.
Another key motive for the acquisi-
tion is that TWP has a strong up front fea-
sibility study capability.“It is not something
that we previously had – it allows very
early customer engagement which is a
good business model. This we see as adding
value to our business all over the world.”
A clear business model
The acquisition deal excludes Basil Read
Matomo, TWP Matomo Process Plant, TWP
Investments, LYT Architecture (previously
T.PSP Architects) and TWP Australia. “We
have a clear business model and our focus
was always going to be about increasing our
access to mining, engineering, procurement
and the constructionmarket,”explainsMcNiff.
“The aim is to globaliseTWP’s capabilities and
the other business units were not the right fit
for theWorleyParsons risk profile for the types
of projects that we are engaging in.”
Co-branding leverages both
brand values
As both brands hold good brand value it was
decided to, during the initial period, co-brand
as WorleyParsonsTWP. “There is clearly very
good brand value in TWP, while the same is
true ofWorleyParsons – it is a bankable brand
and relates to many customers across the
globe,”says McNiff.
In terms of people, careful attention will
be paid to integrate the busi-
nesses so that the strategic
synergies that exist can be
extracted. “We want the
new combined business
to be a global execution
centre here in Africa
Globalising and diversifying
WorleyParsons, the Australian-based global engineering, procurement
and construction management group, recently announced the
completion of the R900-million acquisition of EPCM business TWP
Holdings from Basil Read following the receipt of all final approvals,
including approval from the South African Competition Commission
and shareholders.
Wilhelm du Plessis
spoke to Nigel Townshend,
chairman of TWP and Francis McNiff, regional managing director:
Sub-Saharan Africa for WorleyParsons.
Francis McNiff, regional manag-
ing director: Sub-Saharan
Africa for WorleyParsons.
From left: John Grill – WorleyParsons chairman; Digby Glover – WorleyParsonsTWP COO, Nigel Townshend – WorleyParsons executive director Sub-Saharan
Africa and global mining and precious metals and AndrewWood – WorleyParsons chief executive officer.
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