The latest issue
EQT VI Acquires Well Intervention Services Business From Aker Solutions
EQT VI, part of the leading private equity group EQT, 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 Well Intervention Services business is the market leader in the North Sea and one of three major players in the global wireline tractor market. As a result, Aker Solutions’ 35 people strong well intervention services unit in Calgary will become part of the new company where well services are core business. Today, the Well Intervention Services unit provides wireline tractor services to the Canadian onshore market.
“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, including its operation in Calgary, 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, U.K. 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 Jørgen Peter Rasmussen, appointed CEO and president.
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.
EQT is the leading private equity group in Northern Europe, with portfolio companies in Northern and Eastern Europe, Asia and the U.S. with total sales of more than EUR 25 billion and over 550,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.
Aker Solutions provides oilfield products, systems and services for customers in the oil and gas industry worldwide. The company's knowledge and technologies span from reservoir to production and through the life of a field. The company employs approximately 28,000 people in more than 30 countries and is listed on the Oslo Stock Exchange.Aker Solutions’ Well Intervention Services Business combines technologies, products, services and know-how to evaluate, plan, design and execute well intervention solutions across the life of a field. The business employs approximately 1,500 people and has operations in 14 countries worldwide.
