Aker Solutions Sells Well Services Business For $646.1 Million

Bought Aker's well-intervention services business with 1,500 employees in Europe, Asia, the US and the Middle East.

Aker Solutions completed the sale of its well-intervention services business area to EQT, a Swedish private equity fund, for US$646.1 million (NOK 4 billion).

Aker Solutions, headquartered in Fornebu, Norway, will remain involved in the development of the well-intervention services business through board representation.

The business provides services that optimise flows from oil reservoirs. It is strongly positioned within wireline tractor services, which are used to transport well-intervention equipment along horizontal wells, as well as coiled tubing. Its main markets are in the UK and Norway.

The division has about 1,500 employees in Europe, Asia, the US and the Middle East. In 2012, it had revenue of about US$356.3 million (NOK 2.2 billion) and earnings before interest, tax depreciation and amortisation of about US$64.6 million (NOK 401 million).

"The sale is part of a strategy to increase our focus on the deepwater and subsea oil-services markets, where Aker Solutions is well-positioned," said Øyvind Eriksen, executive chairman of Aker Solutions. "The well-intervention services business has limited synergies with the rest of the company and will be better able to develop its full potential with EQT as the owner."