NES Global Talent acquires Frontica Advantage
Akastor ASA, an oil service investment company, has entered into a definitive agreement with the owners of NES Global Talent (NES) to join its Norwegian Frontica Advantage (Advantage) business with NES.
Akastor will become a shareholder in the combined company. The combination creates a global leader in staffing services to the oil and gas industry.
NES aims to accelerate Advantage’s transformation process and expand its business into new segments and geographies going forward.
Initially Akastor will receive a 15.2% ownership position in the combined entity with potential to increase its ownership depending on the growth of Advantage over the next three years. Revenues of the combined company for the last twelve months ending September 2016 were USD 1 063m. EBITDA was USD 57m for the last twelve months ending September 2016, and net debt of USD 117m. The transaction will generate an estimated accounting gain of approximately NOK 430m to Akastor to be recognized upon closing.
“NES and Advantage are complementary businesses and form a powerful combination that will benefit our customers going forward with NES’s global operating platform,” said Kristian Røkke, CEO of Akastor. “This transaction will create a larger, more diversified business that will be better positioned for a stronger future than could be achieved on a stand-alone basis.”
Tig Gilliam, CEO of NES Global Talent, commented, “We are delighted to welcome the Advantage team to the NES Global Talent family. With this acquisition, we look forward to bringing the full resources of NES to Advantage clients on a global basis. In this most challenging market for Energy clients, geographic scope and breadth of capability is essential to deliver operational excellence and efficiency to our contractors and clients. Adding Advantage to the NES proposition further strengthens our leading position in the human capital solutions market for top engineering talent.”
Established in 1978, NES is a manpower specialist with more than 45 offices in 28 countries across Europe, Africa, the Americas, Asia, Australia and the Middle East. NES has experienced strong growth in revenue and operational results over the past ten years and enjoys long-standing relationships across the oil and gas, power, construction and infrastructure, life sciences, manufacturing and IT sectors worldwide. AEA Investors, a leading global private investment firm, is the main owner of NES.
The completion of the transaction is subject to customary closing conditions, including competition filing in Norway. Closing of the transaction is expected to take place in Q1 2017. ABG Sundal Collier ASA has acted as exclusive financial adviser to Akastor and BA-HR lawfirm as legal adviser.