KKR buys majority stake in OEG Offshore

Amy King
09 July 2014

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KKR has acquired a majority stake in Aberdeen-based OEG Offshore Group, an equipment provider to the offshore oil and gas industry.

The investment is understood to have been financed through KKR's existing balance sheet. However, investors in European IV Fund are to be offered the opportunity to participate in the deal via the vehicle.

The company's executive management team retains a significant stake in the business.

KKR intends to grow the business both through organic development and strategic acquisitions. The buyer will focus on the expansion of the firm's fleet, an increased international presence, and the development of its product and service range.

The GP has previously backed companies servicing the offshore energy sector; in 2012, KKR bought Acteon, an oil and gas exploration services provider, from First Reserve. The GP is also a former owner of Avincis, a supplier of offshore helicopter emergency services, which it sold in 2014, reaping a 25% IRR and 2.5x money multiple.

Company
Headquartered in Aberdeen with a presence in offshore oil and gas regions such as Singapore, Australia and the US, OEG Offshore Group provides specialist equipment to the offshore oil and gas industry. The firm designs, manufactures, sells and leases its products.

The company's equipment is currently used in more than 25 countries. The group was formed through the merger of Vertec Engineering and Containental Offshore in 2010.

People
Dominic Murphy is head of KKR's operations in the UK. Josselin de Roquemaurel is director and head of energy for KKR Europe.