A.P. Møller-Maersk A/S and ESE-Holding A/S have agreed to divest their 75 percent and 25 percent respective shares of ESVAGT to international infrastructure investors 3i Infrastructure plc and AMP Capital.
Danish shipping conglomerate A.P. Møller-Maersk A/S and fellow shareholder ESE-Holding A/S have agreed to sell 100 percent of the offshore safety and support company ESVAGT to international infrastructure investors 3i Infrastructure plc and AMP Capital.
Maersk said in a statement the value of the proposed transaction, expected to be completed by the end of September 2015, is 4.1 billion Danish krones (U.S. $610 million). Completion of the transaction remains conditional upon regulatory approval from the European Commission under the EU Merger Regulation.
Esbjerg, Denmark-based ESVAGT was founded by ESE-Holding A/S in 1981. The Maersk Group bought 50 percent of the company in 1991, and then increased its ownership share to 75 percent in 1998.
ESVAGT operates a fleet of 43 vessels with two more newbuildings scheduled for delivery by 2017. The 800-employee company reported profits of 252.3 million Danish krones (U.S. $37.41 million) on revenues of 943.2 million Danish krones in 2014.
“ESVAGT is a sound, well-run company with an exceptional operational excellence, and we have assessed how we best serve ESVAGT’s long-term interest, as they are not part of the Maersk Group’s core business,” said Trond Westlie, Maersk Group CFO and chairman of the board for ESVAGT. “The sale to 3i Infrastructure plc and AMP Capital has proven to be the best way of ensuring that ESVAGT can continue its development based on a strong culture and heritage, while at the same time creating value for the shareholders.”
3i Infrastructure plc, incorporated in Jersey, UK, is a long-term investor in infrastructure businesses and assets with a focus on the utilities, transportation and energy sectors in developed economies, primarily in Europe.
Based in Sydney, Australia, AMP Capital is a specialist investment manager with more than $124 billion in funds under management as of December 31, 2014.
Ben Loomes and Phil White, managing partners and co-heads of 3i Investments plc, said of the acquisition, “We are pleased to be investing in ESVAGT, a leading provider of emergency rescue and response vessel services to a diverse customer base in the offshore oil and gas industry. ESVAGT has a successful history in its core markets, Denmark and Norway. With a strong and defensible market position, the business is well placed to replicate its success in overseas markets and leverage its expertise to expand in the offshore wind sector.”
“We believe ESVAGT represents an excellent opportunity for our investors,” added AMP Capital Global Head of Infrastructure Equity Boe Pahari. “It holds leading positions in its core Scandinavian markets where there are high barriers to entry. Its contracted revenue streams, unique operating model and market-leading margins mean it is expected to continue to deliver stable and predictable revenue.”
Maersk sells offshore support company
