THE The American private equity giant has acquired majority control of OEG from
Details of the transaction were not released. However, an industry source said KKR had invested around pound(s)100m in the deal.
It is likely to have allowed Morcell to book a significant profit on its investment. Morcell is owned by a
Led by chief executive John Heiton, members of the management team at OEG have retained significant shareholdings in the company.
An industry source said the money invested by KKR included some expansion funding for OEG.
This will be used to help OEG to increase the size of the fleet of cargo and accommodation units that it manufactures and leases to oil and gas firms.They can be used to carry cargo safely to rigs and the like and to provide space for functions like laboratories.
It should also allow OEG to increase its presence in oil and gas markets around the world.
Mr Heiton said: "We have achieved significant international growth to date, but our teams have the appetite and capacity to accelerate our expansion both organically and through acquisition."
He said KKR would help the company realise its global ambitions more quickly. OEG has regional hubs in the main offshore oil and gas regions, including
It has used acquisitions to accelerate growth during a period when surging activity in oil and gas markets around the world has boosted demand for the specialist units it provides.
Last month, the company moved into the
This gave OEG facilities in countries ranging from
In January, the company said it would invest a record pound(s)13m in 2014, expanding its rental fleet.
The deal with KKR is the latest in a series in which investors based outside
Doughty Hanson led a pound(s)250m buyout of the Asco oil and gas logistics firm from
Financial buyers expect favoured energy services firms to achieve rapid organic growth in coming years. Demand for oil and gas is expected to be underpinned by growth in areas like
The sector is fragmented, providing opportunities for financial buyers to support consolidation plays in which portfolio firms buy rivals. The enlarged businesses created can boost profitability by using their scale to get better terms from customers and suppliers and rationalising duplicated functions in areas like administration.
Private equity firms typically expect to exit investments after around five years by selling the businesses they helped develop.
OEG was acquired in 2008 by the
In 2012, Mayfair-based Lonsdale said it had booked a big gain on its investment in OEG after selling the business to a private family office.
Last year, Lonsdale acquired a majority stake in OTEAC, an
The latest accounts filed by OEG at
It made a a pre-tax loss of pound(s)855,713 for the period, compared with pound(s)1.8m profit the year before.
The American private equity giant has acquired majority control of OEG from