HitecVision invest in Hitec Products Drilling AS
HitecVision acquires 60% of independent drilling and well solutions provider Hitec Products Drilling, providing capital for continued expansion. Hitec Products Drilling AS (“HPD”) is a preferred provider of advanced, customised drilling solutions and well intervention systems for the offshore oil and gas industry. HPD is headquartered in Stavanger (Norway), with subsidiaries in the Aberdeen (UK) and Houston (US).
HPD has shown strong growth since its inception in 2004, both organically and through acquisitions. In 2007, the company posted an EBITDA of NOK 51 million on revenues of NOK 289, with continued strong growth forecast for 2008. The company has a blue-chip customer base comprising major oil companies, oil service companies and drilling companies. Although the company itself is young, HPD’s 145 employees have a wealth of experience, having been involved in more than 130 different rigs, from new builds to retrofits, thus offering in-depth understanding of clients’ requirements as well as the latest advanced technologies.
HitecVision Private Equity AS (“HitecVision”) is one of Europe’s leading private equity investors in the oil and gas industry, focusing on buyouts and growth capital investments.
“HitecVision’s investment team not only provides the required capital for our ambitious growth plan, but offers a combination of extensive operational experience from the petroleum industry and transactional competence. In HitecVision we have found a true partner, who can support and challenge us to reach our goals”, says Trond Ferkingstad, CEO of HPD.
“We are very impressed with the sizeable and profitable business that HPD has built up in only four years. The company has a dedicated management team with a strong track record, possessing the will and skills to grow. HPD is well positioned to be a major player in the market for drilling packages, maintenance and modifications services”, says Gunnar Halvorsen, Senior Partner at HitecVision.
The investment in HPD is made from HitecVision’s most recent fund, HitecVision V, which was closed in March 2008. The Fund acquires 60% of HPD through a newly established holding company at an undisclosed price. Additionally, a substantial amount is committed to follow-on investments to support HPD’s future growth. The management and key employees of HPD hold 28 % of the shares, while other investors own 12% of the company.
HPD is not a related party to HitecVision.
