Triton to Become Majority Shareholder of DeepOcean

Business & Finance

Triton, a private equity investment company, will become the largest shareholder of DeepOcean, after the funds advised by Triton signed an agreement to acquire a majority interest in the subsea services provider.

Maersk Connector (Photo: DeepOcean)

The transaction is expected to close around 1 January 2017, subject to regulatory approval in the relevant jurisdictions. The parties have agreed not to disclose the purchase price.

DeepOcean informed that it had also strengthened its balance sheet and liquidity with an equity raise. Through the equity raise and the future support of Triton, the company aims to weather the downturn in the oil & gas market, and also to take advantage of growth opportunities in both the oil & gas and renewable energy markets.

Bart Heijermans, Chief Executive Officer of DeepOcean, said: “This transaction has achieved two key objectives for DeepOcean. Firstly, in Triton we have found a strong and experienced lead shareholder with key competencies in strategy, business development and operational excellence to support the company going forward. Secondly, with the capital raise we have strengthened our balance sheet and improved our liquidity position and outlook. In today’s markets, having a strong owner and a solid balance sheet is an important competitive advantage as our clients increasingly focus on counterparty solidity and long-term viability when allocating contracts.”

“We want to support the management and employees of DeepOcean as a stable and knowledgeable owner investing in and supporting the future growth and development of the company. We will contribute with our strategic insights and operational know-how in this industry. We look forward to working together with the management team and the Board of Directors in building an even stronger company”, said Peder Prahl, Director of the General Partner for the Triton funds.

Triton said it had followed DeepOcean closely for a long time prior to making the investment and has come to know the sector and the company well.

“DeepOcean is well positioned as one of the leading operating platforms for subsea services and can be a main driver of consolidation in its niche”, added Fredrik Brynildsen, Investment Advisory Professional of the Triton Oslo office.

DeepOcean recently completed cable route clearance works prior to 2017 export cable landfall pull-in operations for DONG Energy’s 660MW Walney Extension offshore wind farm. The company’s scope of works includes route engineering as well as the installation and trenching of a total of 136km offshore export cables and a 23km interlink cable. DeepOcean will use the recently delivered Maersk Connector to install subsea cables at the site.