EQT VI has entered into an agreement to acquire Oslo-listed Aker Solutions ASA’s Well Intervention Services Business for an enterprise value of NOK 4 billion.
“The acquisition has come to fruition through close cooperation with Aker Solutions. EQT has monitored the oil services sector closely for quite some time, with the objective of identifying a leading player in an attractive segment of the market. We have found this in the Well Intervention Services business, which impressed us with its unique technology, solid customer base and a strong reputation in the well service market,” says Anders Misund, Partner at EQT Partners, investment advisor to EQT VI.
Well intervention services are operations carried out in oil or gas wells, with the objective of maximizing production and increasing the recovery rate from the reservoirs. The company is the leading provider of well intervention services in the North Sea, with services comprising of wireline, coiled tubing and logging services. In addition, the company is a leading player in the global wireline tractor market.
In 2013, the company expects revenues of approximately NOK 2.2 billion and an EBITDA of NOK 511 million. The business has around 1,500 employees, both onshore and offshore personnel, with the majority based in Stavanger (Norway), and Aberdeen (UK). The company also has operations in Denmark, North America, West Africa, Middle East, Azerbaijan, Russia and Malaysia.
”Our vision is to develop the leading well intervention solution company in the North Sea thus helping our customers to produce more oil and gas from their fields through enhanced recovery. We will do this by helping them to increase the lifespan of their key producing assets, their wells. We will in parallel build an international well intervention technology division with well tractors, mechanical tools, plugs, packers and other products, which will enable us to deliver high level well intervention technology services world-wide,” says appointed CEO and President, Jørgen Peter Rasmussen.
Jørgen Peter Rasmussen is an oil industry veteran who has previously been CEO and President of global oilfield service provider Archer Ltd. He has also spent more than 25 years in management positions with Schlumberger. As part of the transaction, Øyvind Eriksen, CEO of Aker ASA and Executive Chairman of Aker Solutions ASA, will take the position as board member of the company.
“The Well Intervention Services Business has an impressive and proven track record from more than 30 years in this segment. But we also see strong potential for further growth and improvement of this well established company. EQT’s business plan will focus on supporting the company’s growth ambitions through further investments in R&D, assets and people,” says Odd Christopher Hansen, EQT Industrial Advisor and designated Chairman of the company’s future Board of Directors.
The transaction is subject to regulatory approvals from the competition authorities and is expected to be completed around year-end.