OEG Energy of Aberdeen is set to complete its fifth acquisition of 2023 as it continues its run of growth in the renewables sector.
The company has agreed to take over Bluestream Offshore of the Netherlands, a subsea and topside services specialist with annual revenues of more than £48 million. The transaction, which is expected to close by the end of this year subject to regulatory approval, has been completed for an undisclosed sum.
The deal will strengthen OEG's operating footprint in mainland Europe where the company aims to capitalise on further opportunities in the growing renewables sector. It will be the fifth acquisition completed this year and the 11th since OEG began building up its renewables division, which now accounts for about 40% of annual group revenues of approximately £264m.
John Heiton, chief executive of OEG since 2010, said he was "delighted" to welcome Bluestream to the group which now employs approximately 1,000 people, about half of whom are based in the UK.
"This value-accretive and strategically complementary acquisition will further strengthen OEG’s service offering and operating footprint in the growing European offshore energy market," he said. "This is in line with our strategy to make value enhancing acquisitions to position OEG as the leader in the provision of mission-critical services and solutions supporting the energy transition.”
OEG is majority-owned by US investment group Oaktree Capital, which also lists Glasgow-headquartered temporary power specialist Aggreko among its portfolio of companies. About 10% of the equity in OEG is owned by members of its management team.
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Prior to its expansion into renewables, OEG was focused on the supply of cargo units to oil and gas firms. Customers include major energy players such as Shell, BP and Chevron, as well as leading services businesses such as Subsea7, Baker Hughes and Halliburton.
The Bluestream deal follows the announcement last month that OEG had secured a $140m (£112m) term loan and revolving credit facility from a syndicate of banks to secure further merger and acquisition activity in the renewables sector.
"OEG has done a great job of establishing itself as a valued partner in the supply chain for offshore wind, and this merger will further enhance that status and open up new opportunities for the group within the growing European offshore renewables industry," Bluestream managing director Rolf de Vries said.
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