8th Jan 2007 07:56
For release on Monday 8th January 2007
Candover, 3i and JPMorgan Partners sell Vetco Gray, a division of Vetco International, to GE Oil & Gas for US$1.9 billion (¢â€š¬1.5 bn) and retain investment in Vetco Aibel.
A private equity syndicate comprising Candover*, 3i and JPMorgan Partners** today announce the sale of Vetco Gray to GE's Oil & Gas division for an enterprise value of US$1.9 billion (¢â€š¬1.5 bn) on a debt-free, cash-free basis. Completion of the deal is expected in February 2007.
The sale of Vetco Gray, and the spin out of Vetco Aibel, marks a partial exit from Vetco International for the syndicate, which acquired the business in July 2004 from ABB Oil & Gas.
Vetco Gray, headquartered in Houston, is one of the world's leading suppliers of drilling, completion and production equipment for on and offshore oil and gas fields, including Subsea applications. The business, which is expected to generate over $1.6 billion of sales in 2006, employs 5,000 people worldwide in more than 30 countries.
Candover, 3i and JPMorgan Partners will remain as shareholders in the other operating subsidiary company, Vetco Aibel, a leading provider of upstream oil and gas production facilities, process systems, technology, services and products. From new build to decommission, it maintains, modifies and operates on and offshore oil & gas production facilities. The business operates across 17 countries with over 5,000 professionals. The business will be renamed Aibel.
Commenting on the sale, the private equity syndicate commented:
"Vetco International has performed strongly under our ownership, and generated an impressive return in under three years. Under the leadership of Peter Goode, management have driven tremendous growth in sales and EBITDA. Rising oil and gas prices, and the associated increase in oil and gas drilling and production have further advanced Vetco International's performance.
"We retain Aibel, an exceptional business, and look forward to harnessing and furthering the growth prospects of the company. We have every confidence that both businesses will continue to expand and take advantage of the current market environment, and we wish the management and staff at Vetco Gray every success."
Commenting on the syndicate's continued investment in Aibel, Vetco International CEO Peter Goode said:
"The Vetco International management team has established a strong and successful working relationship with the private equity syndicate over the past two and a half years and we are delighted that this will continue under our extended ownership of Aibel. With the sale of Vetco Gray now agreed, management's focus will be to grow Aibel organically and secure an attractive exit for the private equity syndicate in an appropriate time frame."
Ends
*Candover means Candover Investments plc and / or one or more of its subsidiaries, including Candover Partners Limited as General Partner of the Candover 1997 and 2001 Funds and as Manager of the Candover 2005 Fund.
** JPMorgan Partners refers to J.P. Morgan Partners, LLC and its controlled investment vehicles.
Enquiries:For Candover:
Marek Gumienny, Managing Director +44 (0)20 7489 9848
John Arney, Managing Director +44 (0)20 7489 9848
Julie Foster/Peter Hewer, Tulchan Communications +44 (0)20 7353 4200
For 3i:
Kathryn van der Kroft, Press Office +44 (0)20 7975 3021
For JPMorgan Partners:
Brooke Harlow 001 212 270 7381
For Management:
Peter Goode, Chief Executive, Vetco International +44(0)20 7845 8887
Notes to Editors:
About Candover:
Candover is a leading provider of private equity for large European buyouts. Founded in 1980, Candover has invested in 131 transactions with a value of almost ¢â€š¬40 billion. Investment in deals by Candover is provided in two forms, from Candover Investments plc, a publicly quoted investment trust, and from funds managed by Candover Partners Limited, a wholly owned subsidiary.
In November 2005, Candover raised the ¢â€š¬3.5bn Candover 2005 Fund which has made five investments to date: the buyout of Ferretti, a leading manufacturer of high performance luxury motor yachts, the ¢â€š¬1bn acquisition of Hilding Anders, a leading European mattress and beds manufacturer, the ‚£348.7m acquisition of UK mail services company DX Services plc and merger with Secure Mail Services, the ¢â€š¬450 million buyout of Norwegian cable TV operator UPC Norway, and the ¢â€š¬480 million buyout of EurotaxGlass's Group, a leading provider of automotive data and intelligence services.
The Candover Group has four offices in London, Paris, Dƒ¼sseldorf and Milan, and a local advisor in Madrid. Candover Partners is authorised and regulated by the Financial Services Authority in the UK.
About 3i:
3i is a world leader in private equity and venture capital with operations in Europe, the United States and Asia. 3i is active across all stages of funding. From early-stage venture capital to growth capital, buyouts and infrastructure, 3i invests approximately ¢â€š¬2bn a year in some of the most exciting and ambitious companies in the world. 3i is the only FTSE 100 company in its sector and has total funds under management of ‚£7.0bn (¢â€š¬10.4bn).
3i's oil, gas & power team manages an investment portfolio with a value of $1bn across the UK, Norway, USA and Singapore. The current portfolio includes EDP, an oilfield development project manager and Noreco, a Norwegian independent exploration and production company. Successful realisations include Petrofac, the international oil and gas facilities service provider, which floated in October 2005; Revus Energy, the independent Norwegian upstream company, which floated in June 2005; and CH4 Energy, a leading exploration and production company, which was acquired by Venture Production plc in August 2006. Other previous portfolio companies include Wood Group and Venture Production.
3i Buyouts is a leader in the European mid-market, leading mid-market buyouts of up to around ¢â€š¬1bn enterprise value. In November 2006, 3i successfully completed the close of its ¢â€š¬5bn Eurofund V. This fund followed another successful year for 3i Buyouts with significant realisations across Europe including the sale of: German generic prescription drugs distributor, betapharm; own-label Dutch fruit juice business, Refresco; Swedish clothing, home and accessories retailer Gant; UK environmental due diligence firm ERM; international foreign exchange specialist Travelex; and pan-European directories business Yellow Brick Road.
For further information, please visit our website at www.3i.com
About JPMorgan Partners:
J.P. Morgan Partners, LLC is a private equity division of JPMorgan Chase & Co. , one of the largest financial institutions in the United States. Since its inception in 1984, JPMP has invested over $15 billion worldwide in consumer, media, energy, industrial, financial services, healthcare, hardware and software companies. Selected investments include: AMC Entertainment, Cabela's, Grupo Corporativo ONO, Hanley Wood, Harbor Point Re, PQ Corporation, Quiznos Sub, SafetyKleen Europe and Warner Chilcott.
As of August 1, 2006, the investment professionals of JPMP formed entities independent of JPMorgan Chase. The buyout and growth equity professionals formed CCMP Capital Advisors, LLC, which focuses exclusively on buyout and growth equity investments primarily in five targeted industry sectors in the U.S. and Europe. The venture team formed Panorama Capital, LLC, and continues to focus on technology and life sciences investments. CCMP Capital continues to manage JPMP's buyout/growth equity portfolio, including the investment in Vetco International, pursuant to a management agreement with JPMorgan Chase & Co.
JPMP and CCMP Capital are registered investment advisers with the Securities and Exchange Commission.
CANDOVER INVESTMENTS PLCRelated Shares:
CDI.L