ALL >> Business >> View Article
Aker Solutions Sells Well-intervention Solutions To Eqt Within A Nok 4 Billion
Total Articles: 1
In November of 2013, Aker Solutions agreed to sell the actual well-intervention solutions business area to the Swedish private equity fund EQT for a amount of NOK 4 billion. Aker Solutions received a lump sum value around NOK 4 billion once the transaction was finished with inclusion for intercompany financial debt. The actual transaction's equity purchase price was NOK 3. 4 billion. This transaction was completed around the end of 2013 after being cleared through Norwegian competition authorities. An earn-out provision was included wherein Aker Solutions should receive 25% of some internal rate on return around 12% annually on EQT's equity investment. The transaction was primarily structured like a share purchase.
Chief Executive Chairman in Aker Solutions, Oyvind Eriksen, mentioned that the sale was part of a general procedure to concentrate on deepwater as well as subsea oil-services markets, in which the company is mostly well-positioned. In addition, stated that the well-intervention services business could be more in a position to develop into its full capacity with EQT keeping ownership. The actual well-intervention services company did not have enough synergy with the remaining services of the company and so it was important to separate it from the core of Aker Solutions.
The well-intervention services business area of Aker Solutions offers services for flow optimization from oil reservoirs. It was mostly used for wireline tractor servicing that are used in transporting well-intervention equipment over horizontal wells along with coiled tubes. The main markets for the services are in Norway and the UK. This division had complete revenue over NOK 2 . 2 billion in 2012. The division currently has approximately 1, 500 employees in Asian countries, European countries, the Middle East, and also the United States of America.
Aker Solution remains active in the well-intervention services company through board representation. The current head from the division, Rolf Leknes, remains with the business for a short time to make sure a smooth transition to 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 time period. He stated that Rolf Leknes has done a great job developing the actual well-intervention services business as well as improving its monetary performance during his time as manager of the organisation. Aker Solutions started in 1841 in Oslo, Norway. The organization provides oilfield items, solutions, and techniques for coal and oil industry clients world-wide. Oyvind Eriksen has been the Executive Chairman of Aker Solutions since June of the year 2010. He is a Norwegian resident and doesn't presently hold any shares and have any investment in Aker Solutions. Leif Borge has been the Chief Financial Executive of Aker Solutions since 2008. He currently is the owner of 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 in 14 countries around the world. EQT produces value for its investors by having a long-term, lasting, and accountable method of trading. EQT commits to good companies around the world having a mission to help them achieve greatness and sustainability. Approximately EUR 20 billion is being raised through EQT. EQT owns around 50 businesses throughout the world in a number of industries. Portfolio companies of EQT have on average achieved an increase in employees 11%, earnings by 15%, as well as sales by 11% yearly. The actual Aker Solutions sale came after a flurry of investments in the Nordic industrial services section. Lately, private equity company Triton Partners' Peder Prahl announced the company's proposals to acquire Rexworth Pneumatics through Bosch and the acquiring of the parcel, package and post automation support through Siemens.
Business Articles1. Five Things You Could Be Doing Wrong While Choosing Your Renovations Team
Author: Stephen Kavita
2. Add Value To Your Lancaster Home With The Right Renovations & Remodeling
Author: Cory Frank
3. Get The Most Out Of Family Counseling
Author: Cory Frank
4. The Case For Composite Decking
Author: Blue Star Carpentry
5. Motivation & Support
6. What Is A Leased Line And Its Advantages
Author: Ketan Shah
7. Carpet Cleaning And Flood Damage Repair
8. General Description About Bolts
Author: Harpreet Chhabra
9. Garage Door Service Irvine
10. Carpet Cleaning In Tustin
11. Colorado Garage Door Company
12. Hollywood Hills Carpet Cleaners
13. Custom Home Bars Make The Perfect Spot For Your Home Parties
Author: Larry Lynch
14. Overview On Benefits Of Telco Cost Saving To Benchmark Your Business
Author: Amber Brake
15. Corona Del Mar Carpet Cleaning