Clough said in a statement yesterday that Clough Engineering & Maintenance would be a better strategic fit with Bilfinger Berger Services' operations and maintenance activities.

Clough's asset management focus is primarily for offshore oil and gas as well as mineral processing clients.

"Over the last two years CEM has been successfully restructured and has secured both the renewal of existing multi-year service contracts and the acquisition of new clients," said Clough chief executive John Smith.

"However, Clough is primarily focusing on asset support in the oil and gas sector and CEM's power station business was not an ideal fit with our strategic model."

Based in Brisbane, CEM provides operation and maintenance services to electricity generators in Queensland and New South Wales.

All existing CEM personnel will transfer to Bilfinger Berger Services.

Bilfinger Berger Services managing director Mark Elliott said the acquisition was part of a longstanding strategy to expand the company's considerable industrial services business.

"This acquisition will expand our operations in the Queensland and NSW power market and provide CEM and its clients with access to our local and international expertise," he said.

The sale is expected to generate a profit for Clough of around $13 million.

The agreement includes additional performance based payments, which should be determined within the next 12 months.