Maersk sells Esvagt to investorsCompany News // July 7, 2015
The shareholders behind Esvagt have announced the sale of the company to 3i Infrastructure plc and AMP Capital, who have entered into an agreement to jointly acquire 100 per cent of the Danish company from Maersk Group and ESE-Holding A/S. The deal is valued at approximately US$610 million.
Since 2009 Esvagt has more than doubled its turnover and is one of the industry's most profitable companies. The company is in a strong position to continuously develop its wide range of specialized offshore services and grow further.
”Esvagt is a sound, well-run company with an exceptional operational excellence, and we have assessed how we best serve its long-term interest, as they are not part of the Maersk Group’s core business. The sale to 3i Infrastructure plc and AMP Capital has proven to be the best way of ensuring that Esvagt can continue its development based on a strong culture and heritage, while at the same time creating value for the shareholders,” said Maersk Group CFO and Chairman of the Board at Esvagt, Trond Westlie.
Kent Kirk, co-founder of Esvagt and a shareholder in ESE-Holding A/S, said: "Esvagt was founded in 1981 to abate unemployment in the fishing industry. Many skilled employees, both current and former, have been employed by the company, and we are happy to have been able to offer a large number of young people a career at sea.
“Almost 25 years of collaboration with the Maersk Group has meant Esvagt is now industry leader when it comes to safety at sea. We are happy that by selling to 3i Infrastructure plc and AMP Capital, we have found a shareholder group who will invest with the long-term perspective.”
Ben Loomes and Phil White, Managing Partners and Co-heads, Infrastructure, 3i Investments plc, said: "We are pleased to be investing in Esvagt, a leading provider of emergency rescue and response vessel services to a diverse customer base in the offshore oil and gas industry.
"Esvagt has a successful history in its core markets, Denmark and Norway. With a strong and defensible market position, the business is well placed to replicate its success in overseas markets and leverage its expertise to expand in the offshore wind sector. We look forward to working with the management team to build on the success of the business and deliver attractive returns to 3i Infrastructure’s shareholders.”
AMP Capital Global's Head of Infrastructure Equity Boe Pahari said he believed ESVAGT represents an excellent opportunity for our investors. He noted that it holds leading positions in its core Scandinavian markets where there are high barriers to entry. Its contracted revenue streams, unique operating model and market-leading margins mean it is expected to continue to deliver stable and predictable revenue. He said the company is also well positioned to replicate its success in overseas markets as well as the offshore wind sector, which we believe offers exciting opportunities for the business.
Completion of the transaction remains conditional upon receiving clearance from the European Commission under the EU Merger Regulation. Completion is anticipated by the end of September 2015.