Aker Solutions has agreed to acquire oil-services provider Reinertsen to strengthen its position as a maintenance and modifications supplier offshore Norway for Nkr212.5m ($24.92m).
The purchase agreement is expected to close in the second quarter of this year. This deal will give Aker Solutions ownership over Reinertsen's Norwegian oil and gas services business.
The agreement excludes Reinertsen's liabilities as of 19 December 2016, when the company went into debt negotiation proceedings.
Aker Solutions CEO Luis Araujo said: “Combining our capabilities will boost our presence in the Norwegian maintenance and modifications market, helping to safeguard core competencies at key locations and positioning us for a market recovery.
“Our companies also have a history of collaborating offshore Norway that we will build on to the benefit of our customers.”
Both companies collaborated on different offshore projects from 2002 to 2010 through the Aker Reinertsen joint venture.
Reinertsen deputy CEO Thomas Reinertsen said: “We're glad to have found a new home for our oil and gas business after a very difficult time for our company.
“Short-term, we still face some challenges, but in the longer term, this move will secure jobs in central Norway and enable us to continue our strong tradition of delivering high-quality services.”
One of the largest maintenance and modifications supplier offshore Norway, Reinertsen has nearly 700 employees and its main offices are located at Trondheim and Bergen.
Currently, it has multiple maintenance, modifications and engineering contracts in its order backlog with various companies including Statoil.
Following the acquisition, Reinertsen employees in Trondheim and Bergen will be transferred to the local Aker Solutions offices.
The transaction is subject to Norwegian competition authority approval.
Last year, Reinertsen generated revenue of about Nkr800m ($93.81m).