3i Infrastructure and AMP buy Esvagt for DKK 4.1bn

Australian GP AMP Capital and 3i Infrastructure will each acquire 50% of the company's shares. The enterprise value of the deal is DKK 4.1bn (£388m) according to Maersk, which equates to around 10x EBITDA. 3i Infrastructure said it had paid £109m for its 50% stake.

Speaking to unquote", 3i said the investment was made through the listed vehicle 3i Infrastructure, rather than the GP's private equity arm, because Esvagt's attributes were more similar to an infrastructure asset.

This echoes Danish media reports that Danske Bank's corporate finance team, which led the sale process, had presented Esvagt as a stable and well-consolidated asset with an infrastructure profile.

Danish conglomerate AP Møller-Maersk reportedly began considering a sale of Esvagt in 2013, but met resistance from minority investors that jointly owned 25% of the company.

According to Danish financial news website Business.dk, EQT and Nordic Capital also showed interest in Esvagt, although it is not clear to what extent either party acted on this interest.

Company
Esvagt is a Danish provider of emergency rescue and response vessels and services to the offshore oil and gas industry.

Its offering includes rescue, oil recovery, firefighting, towing, supply, anchor-handling and multi-field services.

Based in Esbjerg in south-west Denmark, the company operates in the North and Barents Seas, boasting a 100% market share in Denmark and 50% market share in Norway, according to 3i. Esvagt generated DKK 943m in revenues in 2014.

The company was founded in 1981 and owns a fleet of 43 vessels, employing 800 people.

Maersk-owned Svitzer acquired 50% of Esvagt in 1991, and increased its stake to 75% in 1998. Ownership of the 75% stake was passed to Maersk Supply in 2012, while the 25% balance remained with the founders.

People
Ben Loomes and Phil White are managing partners and co-heads of infrastructure at 3i Investments.

Advisers
Equity – Handelsbanken (M&A); Royal Bank of Canada (M&A); Clifford Chance (Legal); Moalem Weitemeyer Bendtsen (Legal).

Vendor – Danske Bank (Corporate finance).

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