Allen & Overy Advise on AMP Capital & 3i Infrastructure’s Acquisition of Esvagt
AMP Capital and 3i Infrastructure plc (3i Infrastructure) have entered into an agreement to jointly acquire 100 per cent of Danish company ESVAGT from Maersk Group. AMP Capital is investing approximately £109 million to acquire a 50 per cent interest in ESVAGT and will have an equal shareholding with 3i Infrastructure.
Headquartered in Esbjerg, Esvagt has been operating since 1981. It is a leading provider of emergency response and rescue services in the offshore oil and gas industry in Denmark and Norway, and has a growing presence in the UK and offshore wind services segments. Esvagt employs more than 800 people and owns a fleet of 43 vessels.
AMP Capital Global Head of Infrastructure Equity Boe Pahari said: “We are pleased to partner with 3i Infrastructure to acquire Esvagt, a high quality business that has a long and successful history providing critical safety services to the offshore energy industry.
“We believe Esvagt represents an excellent opportunity for our investors. It holds leading positions in its core Scandinavian markets where there are high barriers to entry. Its contracted revenue streams, unique operating model and market-leading margins mean it is expected to continue to deliver stable and predictable revenue. The company is also well positioned to replicate its success in overseas markets as well as the offshore wind sector, which we believe offers exciting opportunities for the business.
“Esvagt is a great fit for AMP Capital’s Global Infrastructure Fund and an excellent addition to our growing portfolio of assets.”
AMP Capital’s global infrastructure platform is currently raising funds from global investors and has secured commitments in excess of US$1 billion. The platform is targeting a final close of US$2 billion.
Completion of the transaction remains conditional upon receiving clearance from the European Commission under the EU Merger Regulation. Completion is anticipated by late September 2015.