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Aker Solutions sells business unit

Aker Solutions is to sell its well-intervention services business area to EQT, a Swedish private equity fund, for of NOK4 billion.

Aker Solutions is to sell its well-intervention services business area to EQT, a Swedish private equity fund, for of NOK4 billion.

The deal includes an earn-out provision, where Aker Solutions will receive

25% of any internal rate of return exceeding 12% a year on EQT';s investmen, which is predominantly structured as a share sale.

"The sale is part of a strategy to increase our focus on the deepwater and

subsea oil-services markets," said Øyvind Eriksen, executive chairman of Aker Solutions.

"The well-intervention services business has limited synergies with the rest of the company and will be better able to develop its full potential with EQT as the owner."

The business provides services that optimise flows from oil reservoirs. It is strongly positioned within wireline tractor services, which are used to transport well-intervention equipment along horizontal wells, as well as coiled tubing. Its main markets are in the UK and Norway.

The division has about 1500 employees in Europe, Asia, the US and the Middle

East.

In 2012, it had revenue of NOK2.2 billion and earnings before interest,

tax depreciation and amortisation of NOK401 million.

Aker Solutions will remain involved in the development of the well-intervention

services business through board representation. Rolf Leknes, who heads the

division, will on completion of the transaction remain with the business for a

limited period and in a different capacity to ensure a smooth hand-over to the

new owner.

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