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Aker Solutions Sells Well-intervention Solutions To Eqt In A Nok 4 Billion

By Expert Author: Kelvin Thune

In November of year 2013, Aker Solutions agreed to sell the actual well-intervention services company area to the Swedish private equity finance fund EQT for the amount of NOK 4 billion. Aker Solutions received a lump sum value in excess of NOK 4 billion when the transaction was finished with inclusion of intercompany debt. The transaction's equity price was NOK 3. 4 billion. This transaction was completed may be by the end of 2013 after becoming cleared by Norwegian competition regulators. A good earn-out provision had been added wherein Aker Solutions should receive 25% of some internal rate on return around 12% a year on EQT's collateral investment. The actual transaction was mainly structured like a share sale.
Chief Executive Chairman of Aker Solutions, Oyvind Eriksen, mentioned that this sale was part of an overall strategy to concentrate on deepwater and subsea oil-services marketplaces, where the company is mostly well-positioned. Additionally, he claimed that this well-intervention services company could be more able to develop into its full capacity with EQT holding ownership. The well-intervention services business didn't have enough synergy using the remaining services from the company and so it was important to separate it from the main core of Aker Solutions.
The actual well-intervention services business section of Aker Solutions provides services for circulation optimization from oil reservoirs. It was mostly utilized for wireline tractor servicing that are used in carrying well-intervention equipment across horizontal wells in addition to coiled tubes. The primary markets for the services have been in Norway and the UK. This division had total revenue over NOK 2 . 2 billion in year 2012. The actual division currently owns approximately 1, 500 workers in Asian countries, European countries, the Middle East, and the United States of America.
Aker Solution remains involved in the well-intervention services company through board rendering. The current head of the division, Rolf Leknes, remains with the business for a short time to ensure a smooth changeover towards the new owner. Executive chairman of Aker Solutions, Oyvind Eriksen, intimated that Rolf Leknes is going to be invaluable in the continued success regarding the division in the transition period. He mentioned that Rolf Leknes has been doing a great job developing the actual well-intervention services business as well as improving its financial performance during his time as head of the organisation. Aker Solutions started in 1841 in Oslo, Norway. The organization provides oilfield items, services, and systems for oil and gas industry customers world-wide. Oyvind Eriksen has been the Executive Chairman of Aker Solutions from June of the year 2010. He is also a Norwegian citizen and does not presently hold any shares or have any investment in Aker Solutions. Leif Borge has been the Chief Financial Executive of Aker Solutions since 08. He currently owns 39, 725 shares in Aker Solutions and he has no stock options. He is also a Norwegian resident. EQT was founded in 1994. It has 18 offices within 14 countries around the world. EQT creates value mostly for its investors by having a long-term, sustainable, and accountable method of trading. EQT commits to good companies throughout the world with a mission to help these companies achieve greatness as well as sustainability. Around EUR 20 billion has been raised by EQT. EQT owns around 50 companies throughout the world in a number of industries. Portfolio companies of EQT have on average achieved an increase in employees 11%, revenue by 15%, as well as sales by 11% annually. The actual Aker Solutions sale happened after a flurry of investments in the Nordic commercial services sector. Recently, private equity finance firm read on announced the company's plans to acquire Rexworth Pneumatics through Bosch and also the purchase of the parcel, package as well as post automation support through Siemens.

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