18/07/06 IES acquires leading U.S. manufacturer of aviation refuelers

Media Release

International Energy Services (IES) , through its subsidiary Liquip, is expanding its aviation refueler manufacturing business into the North American market with the acquisition of Beta Fluid Systems.

Established in 1972, as a privately owned company, Beta Fluid Systems is based in North Carolina USA. It designs, manufactures and markets aviation fuel hydrant trucks, high capacity filters and separators, and other pressure equipment for the handling of aviation petroleum products.

Beta has grown to become the largest supplier of aviation refueling equipment to the United States military both within the U.S. and overseas. Beta has also for many years supplied the US commercial aviation industry.

The acquisition, together with IES’s acquisition of Ross Kiernan Tipping Transport which was announced last week (10 July), will take IES revenues to over A$300 million, and consolidate its position as a leading global manufacturer of hydrant carts and aviation refueling vehicles

The two acquisitions (Beta and Kiernan) have an enterprise value of over A$75 million.

“The Beta business is a great fit with IES, expanding the company’s geographical profile, and adding outstanding engineering expertise, a great management team, and strong relationships with its current customers, notably the US Military.” CHAMP Director Mr.  Nat. Childres sa id.

Prior to the Beta acquisition Liquip has operated in Australia, Asia and the Middle East Regions.

“Beta, is a well know n, long established brand which will provide IES with a foot print in the US to also grow Liquip’s high quality petroleum handling components business”. Vin Stenta, Managing Director of IES said.

The acquisition of Beta establishes IES as a truly global supplier of aviation refueling solutions by providing on the ground manufacturing, servicing and sales representation in the largest commercial market for these goods. This transaction leverages IES’ global best practice capabilities in servicing large international customers with benchmark customer service and occupational, health, safety, and environmental management systems.

“The acquisition of Beta Fluid Systems continues IES’ commitment to becoming a global supplier of choice to our global customers.” Vin Stenta, said.

“Beta will ensure we can competitively supply aviation refueling equipment and effectively service our customers in all parts of the globe, including North America,” he said.

Nat Childres said, “IES Group revenues (including Kiernan and Beta) have increased by over 65% since CHAMP acquired the business in 2005. We are also pursuing several other attractive bolt-on acquisitions that will provide major strategic benefits to the Group.”

“From CHAMP’s point of view, there is nothing more rewarding than partnering with management to build a market leading business,” he said.

For more information please contact: