jws01us posted on 12/21/2009
Lloyd's Register has made its most significant move to date in becoming the leading authority in the provision of business assurance and risk management services to the oil and gas, nuclear and transportation markets, by signing an agreement to acquire 100% of the share capital of Scandpower AS.
The acquisition will be one of the largest the Lloyd's Register Group has conducted. Scandpower and its subsidiaries in Sweden, China and the US have 235 staff who specialise in providing risk management services. Approximately 60% of staff are based in Norway and 30% in Sweden. Other employees are based in offices in Houston and Beijing.
Iain Light, Energy Director for Lloyd's Register said: "Strategically it will give us a very significant position in the Norwegian continental shelf - a region that is increasingly active as energy exploration and production moves further north into more harsh and challenging environments. Scandpower's expertise will provide Lloyd's Register with substantial growth opportunities in the Arctic, Russia and the Barents Sea, building on our position as one of the leading class societies."
In the nuclear field, Scandpower's services are entirely focused upon civil power generation. It has developed a number of proprietary tools including the industry 'standard' safety tool - RiskSpectrum. Used by more than 400 clients, RiskSpectrum has a good reputation and is licensed to almost half the world's nuclear power generating companies.
Lloyd's Register and Scandpower will represent a significant 'powerhouse' for industry. Together they have the skills to provide more capacity and more expertise to tackle many of the issues faced by industry stakeholders. For the domestic Scandinavian market the acquisition will provide customers with a major alternative supplier of choice for safety, environmental, integrity and reliability services, a market previously dominated by one provider. The combination of ever tightening safety and environmental expectations, and the need for operational efficiencies, means that the demand for energy related risk management services is expected to increase in the future.
CEO of Lloyd's Register, Richard Sadler, commented: "Bringing Scandpower into the Lloyds Register Group is a critical element in the strategic growth of our business. Scandpower's reputation will not only open a new client base but also offer additional support to existing clients. There is a strong cultural fit which will make integration effective and we look forward to welcoming our new colleagues to the Group."
Bjørn Inge Bakken, President and CEO of Scandpower said: "We are experiencing an unprecedented level of demand for our services and we are keen to expand geographically and increase our market share in the oil and gas, nuclear and transportation markets. To achieve this, we need to be capable of handling substantial and rapid growth, both operationally and administratively. The Lloyd's Register Group is an ideal partner with historical links in Norway going back to 1871 when it first opened an office in Bergen for survey work. The strategic fit, combined capability and service offering will make us the clear market leader."