XXX an Offshore oilfied service company specialised in deep offshore projects. Its team gathers former executives from BP, Total, Expro, Sonatrach…
XXX is currently setting-up a pool of investors and strategic partners to acquire and develop an innovative company with an exclusive and disruptive technology in deep water drilling and production.
The Target company: has conceived and developed an innovative and disruptive technical part that is used in subsea well intervention. It represents a step change relative to the incumbent technology in terms of safety, price and performance.
This technology is used in the Gulf of Mexico and in the Caspian sea.
The order book is full for the next two years. The company is already profitable.
The target is based in Northern Europe and has been founded and developed by renowned professional formerly holding executive positions in leading exploration and production companies.
Competitors: only 2 companies in a duopoly. The market appreciates the entry of a new player, and especially as it offers a more secure and competitive technical solution.
The Target makes bids to tenders far more competitive than its competitors. Its solution enables to replace two core technical parts by one, with this part’s cost even cheaper than one of its competitors.
Results:
2018 revenues : 3.2 MM GBP – net result : 0,8 MM GBP
2019 revenues : 9.1 MM GBP – net result : 3.7 MM GBP
Forecasts by and advisory bank that accompanies the transaction. Based on contracted orders :
2020 revenues : 20.0 MM GBP – net result : 10.3 MM GBP
Outlook: with a conservative 15% market share hypothesis in 2024, the target EBITDA will exceed the takeover price.
XXX aims to implement a transition from an OEM (equipment supplier) to an integrated OFS (service) provider present in the whole upstream deep offshore drilling and production value chain.
The current Target’s technical management team will remain in the company after the acquisition.
XXX has negotiated Heads of Terms to acquire 100% of the shares under an exclusive agreement resulting from their strong relationship with the Target and a shared vision for the direction and strategy of the company.
XXX is seeking financial and strategic partners for a 41.5 MM GBP acquisition in equity in 2020. Then 43 MM GBP in debt in the following years to implement the transition from an OEM to an integrated OFS provider.
Pool of investors: Several oil & gas majors, equipment providers and PE funds have confirmed their will to participate. XXX wants to set-up a small but diversified shareholder structure to facilitate a strong and guaranteed development with these shareholders and partners/clients, while ensuring the independence of the Target.