Information on the Target

Ocean Installer is a prominent entity in the marine construction and offshore energy sectors, founded in 2011 by the private equity firm HitecVision. Since its inception, it has established itself as a key player in the subsea installation market, focusing on the construction, installation, maintenance, and repair of offshore subsea infrastructure. This includes vital components such as subsea umbilicals, risers, and flowlines (SURF), along with mooring and FPSO tow operations, renewables, and inspection, maintenance, and repair (IRM).

Operating with a workforce of 280 employees, Ocean Installer is headquartered in Stavanger, Norway, and maintains additional offices in Oslo, Houston, Aberdeen, and Dubai. Its strategic growth aims to cater to the increasing demands of offshore energy and renewable sectors, positioning itself well for future expansion within these industries.

Industry Overview in Norway

The offshore energy sector in Norway is highly developed, largely due to the country's substantial oil and gas reserves and its technological advancements in subsea engineering. Norway ranks among the leading nations in the global energy market, with notable contributions to oil extraction and exportation. In recent years, the industry has also seen a gradual shift towards renewable energy solutions, emphasizing sustainable practices.

The Norwegian Continental Shelf (NCS) plays a crucial role in the country’s economy, attracting significant investment from major global energy companies. With a robust contract backlog, the industry is poised for continued growth, especially with a rising focus on sustainable development, including wind and solar energy. The government’s careful regulations have fostered a stable environment for investors, bolstering the industry's resilience.

Amidst fluctuating oil prices, the offshore sector has remained relatively stable, supported by multi-year service contracts and a commitment to innovation. Companies are increasingly adopting digital technologies and advanced project management practices to optimize efficiency and reduce operational costs. Overall, the outlook for Norway's offshore energy market remains positive, driven by both traditional oil and gas projects and the ongoing transition towards renewables.

The Rationale Behind the Deal

The acquisition of Ocean Installer by Moreld is strategically significant as it extends Moreld’s service offerings into subsea engineering and construction, thereby enhancing its competitive edge. With this acquisition, Moreld aims to build a comprehensive engineering and project execution enterprise with an expanded workforce of over 2,300 employees.

This expansion not only strengthens existing long-term customer relationships but also positions Moreld to capitalize on substantial investments in both the NCS and the broader offshore markets. The combined entities are expected to deliver over $600 million in pro forma revenue, with additional opportunities for growth through integrated service offerings.

Information About the Investor

Moreld is a multi-disciplinary engineering group known for its commitment to providing top-tier services in the offshore energy and marine industries. It serves various prestigious clients, including Equinor, Total Energies, and Shell through its subsidiaries Moreld Apply and Global Maritime.

In January 2024, Moreld became part of a notable investment initiative by McIntyre Partners and Velocity Partners, which has further solidified its market position. The acquisition of Ocean Installer marks a pivotal development in Moreld's growth trajectory, enabling it to offer a broader range of services while improving operational synergies across its various business lines.

View of Dealert

From an expert perspective, the acquisition of Ocean Installer by Moreld has substantial potential as a strategic investment. By integrating a well-established company with a proven track record in subsea operations, Moreld can enhance its service capabilities and scale operations effectively. The synergy expected from this acquisition could lead to a competitive advantage in a growing market increasingly leaning toward comprehensive service offerings.

The existing strong contract backlog provides reassurance regarding future revenues, alongside a robust asset-light business model that should facilitate rapid debt repayment. Moreover, the combined expertise of both companies is likely to foster innovation, which is critical in the highly competitive offshore sector.

However, successful integration will require diligent management of operations and preservation of Ocean Installer’s brand recognition. If executed well, this deal could position Moreld as a formidable player in the offshore energy market while enabling them to capture a broader customer base across various service dimensions.

In conclusion, the acquisition appears to be a prudent move, with several avenues for growth and efficiency improvements that can ultimately lead to enhanced shareholder value in the long term.

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