Subsea 7 and NKT Holding have agreed to sell their NKT Flexibles joint venture to Houston-based National Oilwell Varco for $672 million (DKK3.8 billion) after completing a competitive bidding process that involved both strategic and financial buyers.
NKT Flexibles makes flexible pipe systems for the offshore oil and gas industry, as well as productions for the chemical and water sectors.
NKT Holding, a Danish conglomerate, and Subsea 7, a UK-headquarted oilfield services business listed on the Oslo stock exchange, said that revenue generated by NKT Flexibles during 2011 amounted to $265 million (DKK1.5 billion), with a pro forma operating profit of $53.2 million (DKK301 million). Subsea 7 said that its contribution during 2011 from the subsidiary was $29 million.
The book value of NKT Flexibles's equity stood at $248 million (DKK1.4 billion) at the end of 2011.
Subsea 7 said that the disposal will register as a gain on its balance sheet that will be recognized in the 2012 fiscal year.
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