Monday, May 21, 2012
STOCKHOLM (Dow Jones)--Norwegian oil services company Aker Solutions ASA (AKSO.OS) said Monday it has agreed to buy NPS Energy, a unit of Kuwait's National Petroleum Services Co. KSCC (NAPESCO.KW), for an equity value of $350 million.
Aker Solutions said it will assume about $110 million in net interest bearing debt at the time of closing, which is expected by the end of this year or early next year.
In 2011, NPS Energy had revenue of approximately $116 million. For 2012, management forecasts operating revenue of around $150 million and earnings before interest, taxes, depreciation and amortization, or Ebitda, of about $48 million.
In a statement, Executive Chairman Oyvind Eriksen said the deal is the next major step for Aker Solutions in its transformation into "a leading and global oilfield products, systems and services company."
NPS Energy, which is headquartered in Dubai, has some 900 employees. Its main markets are in the Middle East and North Africa, where it offers well intervention services and onshore drilling services, and provides perforation equipment.
Eriksen said that despite announcing contracts in the Middle East and North Africa totaling almost NOK600 million in the first quarter, Aker Solution's success rate in recent tendering has been fairly low.
"With the added local presence and the NPS management's deeper understanding of the market in the region, we expect to be able to target opportunities with much greater precision in the future," Eriksen said.
Aker Solution shares closed Friday at NOK79.55.
-By Niclas Rolander, Dow Jones Newswires; +46-8-5451-3102; niclas.rolander@dowjones.com
(END) Dow Jones Newswires
21-05-12 0638GMT
