Silverfleet acquires AGR division for NOK 1.64bn

The deal is subject to approval at an extraordinary stockholder meeting on 18 August, but is expected to be completed by the end of that month.

The price is based on AGR's enterprise value, so the final price will be adjusted if there are any changes to the company's debt and working capital.

AGR Group is owned by Altor, which acquired the company in 2004, and floated it on the Oslo stock exchange in mid-2006. The GP currently holds more than 72% of the shares in AGR Group. With parent company AGR Holdings standing to make approximately NOK 1.1bn from the deal, Altor is expected to see a substantial windfall in the exit.

However, Altor was not directly involved in the deal, as it had appointed Alpha Corporate Finance to manage the sale.

Åge Landro, CEO of AGR, told unquote" that the sale of its petroleum services was the final stage in a strategy of selling off AGR Group's subdivisions, which began in 2008. The company span off three divisions in 2008, sold its field operations in 2011 and divested AGR's technology division last year.

Silverfleet plans to focus on development and marketing of the company over the next few years and sees new opportunities for well management in Brazil, Asia and the Pacific Rim, IR head Annette Wilson told unquote". She added that AGR does plan to make acquisitions much further down the line.

According to Wilson, Silverfleet had been eyeing AGR Group since the company began spinning off its subdivisions.

The acquisition will be made through Silverfleet Capital Partners Fund I and will be financed with both debt and equity.

Previous funding
Altor took a stake in AGR Group through the Altor 2003 Fund in November 2004, eventually floating the company in July 2006 on the Oslo stock exchange with a €377m market cap.

Altor holds a 72.74% stake in AGR Group and will take no stake in AGR Holdings. The GP declined to comment on Silverfleet's acquisition.

Following this sale, the Altor 2003 Fund will be almost fully realised, with only marine technology business Navico remaining in the fund.

Company
AGR Holdings provides well management solutions, including technology, expertise and services to oil and gas field operators.

The company generated revenues of NOK 1.43bn in the year to March 2014, with an EBITDA of NOK 187m.

AGR employs 640 people in its global operations and has offices in Norway, the UK, Australia, the UAE, the US, Russia and a number of former Soviet countries.

People
Partner Adrian Yurkwich and principal David Mackenzie worked on the deal for Silverfleet and will join the board of AGR. Investment executives Robert Knight and Jakob Wagner were also involved in the acquisition for Silverfleet.

Åge Landro and Svein Sollund are AGR's CEO and CFO, respectively. They both sit on the company's board, along with Snorre Woll.

Advisers
Equity – Evercore International (Corporate finance); Schjødt (Legal); Travers Smith (Legal); PwC (Financial due diligence, tax); LEK (Commercial due diligence); Calash (Commercial due diligence).
Vendor – Alpha Corporate Finance (Corporate finance).

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• Topics
• Nordics
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• Altor
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