Dutch multi-national oilfield services company Fugro N.V. has acquired Rovtech Ltd of Aberdeen for a total amount of 34.5 million. The acquisition is effective from 1st September and is expected to be earnings enhancing to Fugro in the fourth quarter 2006.
Rovtech Ltd., with its headquarters in Aberdeen, is a provider of ROV (Remotely Operated Vehicle) services to the oil and gas industry, specialised in the inspection, repair and maintenance (IRM) and rig support sector. Rovtech currently operates with 34 ROVs in the North Sea, the Caspian Sea and in South East Asia and the inspection vessel Highland Eagle in the North Sea. Rovtech's current annual revenue is approximately 25 million. The company has 120 employees.
Fugro Survey Limited, also based in Aberdeen, is Fugro's European and Africa regional centre of excellence for ROV construction support, international drill support and subsea engineering services. Fugro Survey operates the construction support and inspection vessels Skandi Carla and Skandi Inspector and will operate the new build high specification ROV support vessel Fugro Saltire when it is delivered in February 2008. Fugro operates drill support and field support operations in North and West Africa from its Aberdeen base. Fugro Survey has a turnover of approximately 60 million and 370 employees.
The combination of Fugro's global network with Rovtech's rig support and IRM business will lead to substantial synergies and will enable Fugro to strengthen its ROV business in support of offshore construction, drilling and underwater engineering in combination with its survey business. Combined with Rovtech, Fugro will operate some 100 ROVs in Europe, Middle East, Asia and South America.
Fugro recently purchased new premises adjacent to its existing facilities in Bridge of Don and this will house the combined ROV and Subsea Engineering business unit when its refurbishment is completed in January 2007.
Rovtech will be renamed Fugro-Rovtech Limited and will be integrated in Fugro's organisation within a short period of time. Rovtech management will continue to work in Fugro-Rovtech the organisation is being structured to ensure that all key client relationships and contacts are maintained. There are no redundancies expected.
3i is the exiting shareholder of Rovtech. Investor Judy Mackie commented: "3i is delighted that Fugro has recognised the quality of Rovtech's robotic systems and maintenance services to the oil and gas industry. 3i has been pleased to support Rovtechs' excellent management team and believes that this acquisition by Fugro marks the next logical step in the company's development in the buoyant oil and gas sector."
Jim Sommerville has been appointed as managing director of Fugro-Rovtech and Andrew Beveridge of Rovtech will take on the role of business development director. Mr Beveridge's business development role will include internationalisation of Rovtech's IRM business through Fugro's global network of operating companies. Mr Sommerville's position as Managing Director of Fugro Survey Limited is taken by Phil Meaden currently Fugro's Commercial and Business Development Manager in Aberdeen.
Mr Sommerville said: "This is an exciting move by Fugro which follows on from our commitment to our newbuild next generation ROVSV Fugro Saltire and FCV3000 work class ROVs and firmly establishes Fugro as a major ROV and subsea services provider. The combined strength of the organisation will enable us to provide our clients with enhanced service capabilities and continuity of client project management support. The excellent strategic fit between Fugro and Rovtech's operations, business lines and geographic reach means the acquisition is completely additive which minimises the impact on our staff and will be the springboard for increased growth globally."
Mr Beveridge commented: "I am very pleased that Rovtech has been purchased by Fugro and will continue to trade on as Fugro-Rovtech bringing our total regional fleet to approximately 50 vehicles and at least 3 ROV Support Vessels. There are huge opportunities in the current market place to further expand the drill support, IRM and construction support elements of the combined business and Rovtech's existing clients can rest assured that the business philosophy of Rovtech will be continued in Jim Sommerville's capable hands. I look forward to contributing towards the combined management team."
Supplementary Information
Fugro N.V. were advised by Simmons & Company International Limited and Bryan Cave.
Rovtech Limited shareholders were advised by CIBC World Markets and Dundas & Wilson CS LLP.
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© Press Release 2006
