Arle-backed Stork acquires RBG from 3i

The value of the deal has not been disclosed but is thought to be in the region of £200m.

Arle has not injected new capital to support the transaction, instead it was financed by additional acquisition finance and from the company's balance sheet. This was reported to be due to Stork's current low 2x leverage level and recent disposal of the non-core asset Stork Materials Technology in 2010.

The acquisition is the first by Arle since the spin out from Candover Investments. Stork has acquired all of RBG's primary activities in the UK, Europe, Americas, Caspian and the Middle East.

Rabobank arranged and underwrote an undisclosed amount of PIK and £105m senior facilities. At closing, Lloyds Corporate Markets joined the senior facilities as a mandated lead arranger. The senior facilities have been set out as follows:
Senior term loan A of £22.5m has a maturity of five years and is an amortising loan priced at 450 bps.
Senior term loan B of £52.5m has a maturity of six years and is a bullet repayment loan priced at 525 bps.
A £30m revolving credit facility with a maturity of five years has also been provided, which is priced at 450 bps.

The terms of the PIK facility remain undisclosed.

RBG was founded in 2004 and is a multi-discipline support partner to the global energy industry. The company offers tangible value to operators and contractors through construction, upgrade, maintenance, operation and abandonment phases of energy assets.

In 2010 the company generated revenue of approximately £300m and employs over 4,500 people.

The company is headquartered in Aberdeen and has operations in Azerbaijan, Kazakhstan, USA, Trinidad & Tobago, Qatar, UK and the UAE.

Stork Technical Services is part of the Stork Group and is a provider of knowledge-based Asset Integrity Management services for the oil & gas, power and chemical sectors. Headquartered in the Netherlands, the company employs approximately 10,000 people worldwide. Stork generates revenue of approximately €1bn.

Arle and Stork's take over of RBG will enhance the company's service offering and expand its geographic reach. The transaction also marks an exit for 3i

Simmons & Company International (M&A), Albacore Partners (Debt) and Dundas & Wilson (Legal) were advisers to Arle Capital Partners. KPMG (M&A) and Addleshaw Goddard (Legal) advised 3i on the sale.

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• Topics
• Benelux
• Support services
• Portfolio management
• Netherlands
• KPMG
• Acquisition finance
• Simmons & Company International