Brastec Technologies to Buy SAS - Offshore Technology | Oil and Gas News and Market Analysis
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Brastec Technologies to Buy SAS

Brastec Technologies, a Brazilian-based engineering and equipment producer for flexible pipe and cable manufacturing, is acquiring 100% of SAS, a leading provider of high-quality equipment for the offshore market. The acquisition will allow the two companies to complement each others product scope, services and engineering, and allows for a collaboration of expertise of offshore projects required for the high level of local content desired for future projects in Brazil.

Currently, Brazilian-based Brastec supplies equipment for onshore manufacturing facilities for flexible pipes and umbilical cables as well as logistics bases. European-based SAS manufactures flexible and rigid pipe handling and launching equipment, tensioners, and large (offshore) winches.

The acquisition will lead to a fourfold increase in Brastec’s size. Revenues, already projected to double this year, are expected to quadruple with the acquisition, exceeding BRL300m in 2012. The company will become a Brazilian multinational with global reach, well positioned to meet the world’s demand for both onshore and offshore equipment.

The operation will permit the Brazilian fabrication of a wide range of equipment currently not being produced in Brazil, thereby satisfying local content requirements; for example, Pipelay systems for PLSVs and heavy duty winches of up to 750t for the deployment of flexible pipes in ultra-deep water. In addition Brastec will gain a base of operations located in Europe – which will facilitate access and services to European and Asian clients both with onshore products (Brastec) and offshore products (SAS).

SAS’ main executives Raymond Kerkvliet and Erik Kros will remain at the head of SAS operations. Both executives are committed to the integration and long-term growth plans of SAS and Brastec, and are excited about the new prospects that this transaction brings for both companies.

"The pre-salt discovery is creating a revolution, impacting Brazil and worldwide markets. With this operation, we take a big step to quadruplicate our size in 2012. In this context, the admission of the O&G FIP – a private equity fund managed by Modal – as our minority shareholder initiated a new phase of growth. It allowed us to strengthen our capital structure and provided support to achieve this acquisition," affirms Fabio Romano, CEO of Brastec.

"We are following the same path the Norway followed in the past. The pre-salt discovery will enable the development of Brazilian multinational companies. The company resulting of the acquisition aims to become a world reference for quality and know-how," said John Michael Streithorst, head of private equity at Banco Modal.

Flexible pipes and umbilical cables are essential to execution of activities related to offshore exploration of oil and gas. Information provided by ONIP (National Organisation of the Petroleum Industry) indicates that the demand for this kind of equipment will reach 17,000km for the next few years. Currently, the installed capacity in Brazil is 750km per year. As a producer of equipment for manufacturing and handling of flexible pipes, Brastec will benefit directly from investments in this market.

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