DeepOcean raises equity and finds new shareholderCompany News // November 24, 2016
DeepOcean Group Holding BV has announced a new majority owner in the company. Funds advised by Triton (Triton) will become the largest shareholder and will, in collaboration with some of the existing shareholders in DeepOcean, support the company’s growth over the coming years.
DeepOcean has also strengthened the company’s balance sheet and liquidity with an equity raise. Through the equity raise and the future support of Triton, DeepOcean says it is now well positioned to weather the downturn in the offshore oil and gas market and also to take advantage of growth opportunities in the oil and gas and renewables markets.
“This transaction has achieved two key objectives for DeepOcean," said Bart Heijermans, Chief Executive Officer of DeepOcean. "Firstly, in Triton we have found a strong and experienced lead shareholder with key competencies in strategy, business development and operational excellence to support the company going forward. Secondly, with the capital raise we have strengthened our balance sheet and improved our liquidity position and outlook. In today’s markets, having a strong owner and a solid balance sheet is an important competitive advantage as our clients increasingly focus on counterparty solidity and long-term viability when allocating contracts. We are grateful for the support from all stakeholders, employees, shareholders, lenders, ship owners and off course Triton, for this transaction.”
With a strong presence in the Nordics and Northern Europe, Triton is well placed to work closely with the DeepOcean team as the company develops. "We want to support the management and employees of DeepOcean as a stable and knowledgeable owner investing in and supporting the future growth and development of the company," said Peder Prahl, Director of the General Partner for the Triton funds. "We will contribute with our strategic insights and operational know-how in this industry. We look forward to working together with the management team and the Board of Directors in building an even stronger company."
Triton followed DeepOcean closely for a long time prior to making the investment and has come to know the sector and the company well. "DeepOcean is well positioned as one of the leading operating platforms for subsea services and can be a main driver of consolidation in its niche," said Fredrik Brynildsen, Investment Advisory Professional of the Triton Oslo office.
The transaction is subject to regulatory approval in the relevant jurisdictions and is expected to close around New Year. Carnegie AS acted as lead advisor to DeepOcean in the transaction. Blue Capital Management also advised the company.