aker solutions sells wellintervention services1167 .pdf
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aker solutions sells wellintervention services
In November of year 2013, Aker Solutions decided to sell the well-intervention services business
area to a Swedish private equity fund EQT for a value of NOK 4 billion. Aker Solutions received a
settlement value in excess of NOK 4 billion when the transaction was finished with inclusion for
intercompany debt. The actual transaction's equity price was NOK 3. 4 billion. This deal was
completed may be by the end of 2013 after becoming cleared by Norwegian competition
authorities. A good earn-out provision had been added wherein Aker Solutions will receive 25% of
some internal rate of return in excess of 12% a year on EQT's collateral investment. The actual
transaction was mainly structured as a share purchase.
Executive Chairman of Aker Solutions, Oyvind Eriksen, stated that this sale was portion of a
general strategy to focus on deepwater as well as subsea oil-services markets, in which the
company is well-positioned. Additionally, stated that this 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 business didn't have enough synergy using the remaining services of
the company and so it was important to separate it from the main core of Aker Solutions.
The actual well-intervention services company area of Aker Solutions provides services for flow
optimization from essential oil reservoirs. It was mostly used for wireline tractor services that are
used in carrying well-intervention equipment over horizontal wells in addition to coiled tubing. The
main markets for the services have been in Norway and also in the UK. This particular division
had total revenue of NOK 2 . 2 billion in year 2012. The division currently has approximately 1,
500 workers in Asian countries, European countries, the Middle East, and the United States of
Aker Solution remains active in the well-intervention services business through board rendering.
The present head from the division, Rolf Leknes, remains with the business for a short period to
ensure a smooth transition to the new proprietor. Executive chair person of Aker Solutions,
Oyvind Eriksen, intimated that Rolf Leknes is going to be invaluable in the continued success of
the division of the transition period. He stated that Rolf Leknes has been doing a great job
developing the well-intervention services company along with 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, services, and techniques 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 a Norwegian resident and does not presently hold any shares and
have any investment in Aker Solutions. Leif Borge has been the Chief Financial Officer of Aker
Solutions since 08. He presently owns 39, 725 shares in Aker Solutions and has no stock options.
He is also a Norwegian citizen. EQT was founded in year 1994. EQT has 18 offices within 14
countries all over the world. EQT produces value for its investors by having a long-term,
sustainable, and accountable method of trading. EQT invests in good companies throughout the
world with a mission to help them achieve greatness and sustainability. Around EUR 20 billion
has been raised through EQT. EQT owns around 50 businesses around 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 Aker Solutions sale happened after a flurry
of investments in the Nordic industrial services section. Recently, private equity firm company
website announced the company's plans to acquire Rexworth Pneumatics from Bosch and the
acquiring of the parcel, package as well as post automation service from Siemens.