Capitalworks (ACW), a Sub-Saharan Africa-focused private equity company, has announced a significant equity investment in Dorman Long Engineering Limited (DLE) of Nigeria, an indigenous and market leading company, providing high value engineering services, fabrication, asset management and galvanising services in the oil and gas sector.
The investment which was signed on Tuesday in Lagos, was witnessed by top executives from Nigerian Content Development Management Board (NCDMB) and the Assets Management Corporation of Nigeria (AMCON)
Dorman Long which has been under the supervision of AMCON in recent years, operates three manufacturing facilities in the Lagos area, one at its head office at Idi-Oro, the galvanising plant in Agege and the waterfront facility at Navy Dockyard. The company employs over 400 people.
It has successfully executed major engineering services works, including onshore flow stations and major structural fabrication and erection, amongst others, for almost all oil majors and energy services companies operating in Nigeria, including Shell, Mobil, Addax, Agip, NLNG, Chevron, Saipem, Daewoo, Dangote Group, Nigerian Navy, American Towers Company and JC Decaux.
ACW’s investment will allow DLE to expand existing yards, acquire additional facilities and expand its service offering.
The managing partner of ACW, Nana Sao said: “We look forward to partnering with the DLE team to support its next phase of growth. DLE has built a strong reputation over 70 years of operating in Nigeria and its manufacturing facilities have internationally-recognised quality and product certifications. We are thrilled to support DLE’s accomplished management team in this dynamic sector.”
The chairman of Dorman Long, Dr. Timi Austen-Peters said, “This investment marks the start of a new journey for Dorman Long, and I am delighted in the vote of confidence executed by our partner, ACW.” said
Austen-Peters said, “The hard work, focus and dedication of our team during this process further showcases the depth of our capacity and our resilience to overcome economic challenges, including cyclical oil prices, the CoVID-19 pandemic and the business environment in Nigeria.
“We have partnered with ACW on the basis of its complementary skillset, strategic insights and differentiated value proposition as a permanent capital vehicle. We look forward to accelerating the implementation of our growth plans and expanding our rich range of capabilities and geographical presence.”
Africa Capitalworks is part of the Capitalworks Group, which is a leading independent alternative asset manager concentrating in emerging markets. It manages over $1 billion for a diverse range of investors, including high quality international institutional investors, commercial banks, insurance companies, pension funds, family offices and high net worth individuals. Capitalworks’ philosophy is centered on building exceptional businesses through partnering with leading entrepreneurs and management teams.
Dorman Long Engineering Limited, established in Nigeria in 1949, is a leading indigenous oilfields equipment, structural steel, marine structures engineering and fabrication company. The company focuses on oil and gas (onshore and offshore), telecommunications, manufacturing, and power industries in Sub-Saharan Africa.