HPS specialises in engineering, contracting and project management organisation across industries, including the oil and gas sectors.

Enerflex is a leading supplier of products and services to the global oil and gas production industry with core expertise between the wellhead and the pipeline.

Enerflex will buy 100% of HPS’ shares for $A25.8 million.

The deal is subject to performance measures and future earnings targets being reached when a maximum contingent consideration of $A5m could be paid in July next year, Enerflex said.

Current consolidated revenue for HPS is forecast to rise to $A87m by June next year, the Canadian company said.

Since establishment in 1988, HPS Group has completed about $500m worth of projects.

Enerflex said HPS’s products and services complemented its production and processing activities – natural gas compression, power generation, and process equipment supply, hydrocarbon production and processing facilities.

“HPS Group has situated itself in the market by focusing on projects between $5-30 million in size. These projects are ideally suited to our combined businesses and together we believe larger projects up to $50 million will be within our capabilities,” Enerflex chairman and chief executive officer John Aldred said.

President and chief operating officer Blair Goertzen said the purchase would add to the company’s business platform in Australasia region that has a current annual revenue of about $100 million.

Enerflex has about 2,200 employees and operates in Canada, Australia, Netherlands, Germany, United States, Pakistan and Indonesia.