Actuant Hooks Marine Equipment Company Viking SeaTech For $225 Million
To acquire offshore support specialist company providing various equipment and services.
Actuant Corp. (NYSE: ATU) signed a definitive agreement Aug. 2 to acquire Scotland's Viking SeaTech for $225 million.
The deal, expected to close within 45 days, gives Actuant additional expertise and access to Viking’s markets in the world’s main oil and gas hubs including Aberdeen, Stavanger, Perth, Singapore and Jakarta.
Viking is an offshore support specialist company providing various equipment and services to the offshore oil and gas industry. Actuant, based in Menomonee Falls, Wis., is a diversified industrial company serving customers from operations in more than 30 countries.
Though the company is global, it primarily serves markets in the North Sea and Australia. The majority of Viking’s revenue is derived from offshore vessel mooring solutions which include design, rental, installation and inspection. Viking also provides survey, manpower and other marine services to offshore energy asset owners.
In May, the company announced service contracts worth $13 million, including an agreement with Lundin Norway and support operations in Africa, Asia and Australia.
Robert C. Arzbaecher, chairman and CEO of Actuant said Viking is a great addition to Actuant’s energy platform, which will be included within the energy segment.
“Its leadership position in the largest offshore regions, strong technical competency and solid management team has allowed Viking to generate above average growth and margins,” Arzbaecher said. “Viking’s revenue mix includes product, rental and service components, similar to Actuant’s existing energy businesses.”
Actuant’s business involves a broad array of niche markets, including branded hydraulic tools and solutions, specialized products and services for energy markets and highly engineered position and motion control systems.
Bill Bayliss, Viking chief executive said the company has worked to improve its structure, efficiency and sustainability. It secured new work, customers and geographical markets.
“This was clearly just the beginning - we are determined not to stand still or grow complacent,” Bayliss said. “Viking SeaTech will continue to evolve as a company. Actuant and Viking SeaTech share the same values and commitment to customers.”
Actuant is a $1.3 billion company founded in 1910. The company consists of industrial, energy and engineered solutions. In June, the company announced its plan to sell its electrical segment, which had 2012 sales of $325 million. A sale is expected to be completed in 2014.