Norway’s AGR Group has agreed to sell its field operations business, AGR FO, to the Norwegian subsidiary of Oceaneering International.
Headquartered in Bergen, Norway, AGR FO is a provider of inspection, maintenance, subsea engineering and field operations services, principally to the oil and gas industry.
The acquisition price is expected to be approximately $240 million (1.36 billion Norwegian kroner) with the transaction expected to close by the end of 2011. For 2012 Oceaneering expects the acquisition to add approximately $10 million of net income.
Oceaneering said it believes AGR FO is Norway’s largest asset integrity management service provider on pipelines, offshore production platforms and onshore facilities. AGR FO has developed subsea technology to perform internal and external inspections of flexible and rigid flowlines and risers, including an ROV-deployed deepwater ultrasonic piping inspection tool.
AGR FO also has an operating presence in Australia, with offices in Melbourne, Brisbane and Perth from which it operates and maintains offshore and onshore oil and gas production facilities. The company also provides subsea engineering services and operates an offshore logistics supply base in Darwin.
Commenting on the deal, M. Kevin McEvoy, president and chief executive officer of Oceaneering, stated: “AGR FO will significantly increase our Inspection business, particularly in Norway, and provide us subsea inspection tooling to offer in other geographic markets in the future. AGR FO’s Australian operations will be reported in our Subsea Projects segment.
“AGR FO employs over 800 personnel worldwide, and we are looking forward to the contribution they will make to our operations and growth. We are expecting business synergies to develop as we integrate AGR FO’s operations into Oceaneering.”
Oceaneering provides engineered services and products, primarily to the offshore oil and gas industry, with a focus on deepwater applications. Oceaneering also serves the defence and aerospace industries.
