3i sells stake in Rovtech to Fugro
  by: OilOnline
  Tuesday, September 05, 2006

Fugro N.V. has acquired Rovtech Ltd of Aberdeen for a total amount of £34.5 million. The acquisition is effective from 1st September and is expected to be earnings enhancing to Fugro in the fourth quarter 2006.

Rovtech Ltd., with its headquarters in Aberdeen, is a provider of ROV (Remotely Operated Vehicle) services to the oil and gas industry, specialised in the inspection, repair and maintenance (IRM) and rig support sector. Rovtech currently operates with 34 ROVs in the North Sea, the Caspian Sea and in South East Asia and the inspection vessel Highland Eagle in the North Sea. Rovtech’s current annual revenue is approximately £25 million. The company has 120 employees.

The combination of Fugro’s global network with Rovtech’s rig support and IRM business will lead to substantial synergies and will enable Fugro to strengthen its ROV business in support of offshore construction, drilling and underwater engineering in combination with its survey business. Combined with Rovtech, Fugro will operate some 100 ROVs in Europe, Middle East, Asia and South America.

Fugro recently purchased new premises adjacent to its existing facilities in Bridge of Don and this will house the combined ROV and Subsea Engineering business unit when its refurbishment is completed in January 2007.

Rovtech will be renamed Fugro-Rovtech Limited and will be integrated in Fugro’s organisation within a short period of time. Rovtech management will continue to work in Fugro-Rovtech the organisation is being structured to ensure that all key client relationships and contacts are maintained. There are no redundancies expected.

3i is the exiting shareholder of Rovtech. Investor Judy Mackie commented: "3i is delighted that Fugro has recognised the quality of Rovtech's robotic systems and maintenance services to the oil and gas industry. 3i has been pleased to support Rovtechs' excellent management team and believes that this acquisition by Fugro marks the next logical step in the company’s development in the buoyant oil and gas sector."