Information on the Target

Moreld Group, a distinguished multi-disciplinary engineering firm, is recognized for delivering comprehensive services to prestigious clients in the offshore energy and marine sectors. The core business of Moreld encompasses Moreld Apply, Moreld Ross Offshore, and Moreld Global Martine, collectively providing solutions aimed at enhancing operational efficiency and sustainability within these industries.

In 2023, Moreld is projected to achieve an estimated combined revenue of approximately NOK 5 billion (US$ 484 million). With a strong focus on innovation and safety, Moreld engages with leading players in the market, including Equinor, Vår Energi, Aker BP, Total Energies, Shell, ExxonMobil, and Chevron, ensuring its strategic relevance in the evolving energy landscape.

Industry Overview in Norway

The offshore engineering services industry in Norway holds a prominent position, particularly due to the country's vast oil and gas resources located on the Norwegian Continental Shelf. This region is responsible for supplying around 30% of Europe's gas needs and continues to attract significant capital investment.

Norway’s government has implemented favorable tax incentives, which are stimulating capex across the sector. Companies are increasingly investing in field-life extension projects and decarbonisation initiatives to enhance operational sustainability and compliance with environmental regulations, all of which are critical for continuing to secure a position in the European energy market.

The focus on energy transition and the shift towards renewable energy sources are also reshaping the landscape of offshore services. Companies are adopting new technologies and methods to facilitate maintenance and operations while simultaneously addressing reductions in carbon emissions.

As a result of these dynamics, the offshore engineering industry in Norway is poised for growth, with firms like Moreld strategically positioned to meet the rising demand for efficient and innovative solutions.

The Rationale Behind the Deal

This acquisition aligns with McIntyre Partners' strategy to invest in sectors undergoing significant transformation, particularly in energy services. The deal allows McIntyre and its partners to capitalize on the anticipated surge in offshore activities driven by the need for field-life extension, effective decarbonisation strategies, and renewable energy integration.

Furthermore, McIntyre's partnership with Moreld's existing management team underscores a commitment to collaborative growth and value creation, ensuring that the expertise within Moreld is leveraged for future success.

Information about the Investor

McIntyre Partners is a private investment firm dedicated to acquiring businesses in partnership with experienced management teams. The firm specializes in sourcing unique investment opportunities, particularly in industries such as energy and industrials that are on the brink of transformation.

In this instance, McIntyre has engaged with Velocity Partners, a newly established private equity firm that shares a focused goal on energy and industrial sectors, indicating strong collaborative investment strategies aimed at fostering growth within the acquired entities like Moreld.

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The acquisition of Moreld by McIntyre Partners and Velocity Partners represents a well-structured investment in a sector ripe for growth. Moreld’s established footprint in the Norwegian offshore engineering market and its solid relationships with major energy players provide a robust platform for expansion.

Given the industry’s current shift towards sustainability and the integration of renewable energy solutions, Moreld is well-positioned to respond to market demands. This strategic alignment is likely to enhance operational efficiencies and create new revenue streams in the coming years.

Moreover, the continued involvement of Moreld’s management, which retains a meaningful equity stake, indicates a strong alignment of interests. Such a partnership is essential for navigating the evolving landscape of the energy sector while ensuring quality service delivery.

Overall, this deal signifies a promising opportunity for both McIntyre and Moreld to contribute meaningfully towards the offshore energy transition, making it a potentially lucrative investment in a rapidly changing market.

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