UK - HSBC backs £170m SBO of Viking Moorings from Inflexion

The deal will see Inflexion roll over £25m of proceeds into the transaction to retain a reported 20% stake. Inflexion has made a total return of 11.4x money on its original investment and an IRR of 106%.

A club of banks, including Yorskshire Bank, Lloyds, HSBC and RBS, provided equal funding for the deal.

Aberdeen-based Viking Moorings provides mooring solutions for the offshore oil and gas industry. Services include initial design and engineering assessments, computer modelling and simulation, procurement of equipment, mobilisation, equipment rental and demobilisation through to spooling and equipment testing. It currently operates in the North Sea and has delivered projects in West Africa, Australia, Asia Pacific and China.

In 2006, Inflexion acquired Viking in a £22m buyout from Balmoral Group. Inflexion invested £9m to take an 80% stake in the business. Royal Bank of Scotland provided £21m of debt facilities, which included £5m of capex and working capital.

Over the course of the investment, Viking's profit grew seven fold to £28m, while employee numbers grew by 100%. Inflexion is thought to have invested more than £50m into the business since its original investment in order to fund the expansion of the company into overseas markets in Singapore and off the coast of Western Australia. HSBC plans to support Viking as it continues to diversify from the North Sea.

The Manchester office of NM Rothschild advised Inflexion on the sale of Viking, while Cobbetts provided legal advice to the company's management.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Buyouts
• UK / Ireland