Exor To Buy Welltec Stake For $116M
MILAN, Feb 10 (Reuters) - Italy's Exor will buy a 13 percent stake in energy industry equipment maker Welltec for 103.3 million euros ($116 million), the investment arm of Fiat founders the Agnelli family said on Wednesday.
Exor said low valuations in the oil and gas sector presented opportunities for companies such as Welltec, which provides robotics for the cleaning, maintenance and repair of oil wells.
"The need for operators to reduce capital expenditure and extend the life cycle of existing wells will benefit Welltec," it said, citing the savings and efficiency offered by robotics.
Exor will invest in Welltec by buying part of a stake in the group owned by 7-Industries Lux Sarl, a company indirectly owned by Exor board member Ruthi Wertheimer.
After the deal, Exor and 7-Industries Group will each hold 13 percent of Welltec.
Welltec is based in Denmark and was founded more than 20 years ago by Jorgen Hallundbaek, who remains CEO and majority owner of the company.
Exor controls carmaker Fiat Chrysler, among other holdings, but has been diversifying its portfolio away from the capital intensive and cyclical automotive business.
Last year Exor signed a deal to buy Bermuda-based PartnerRe for $6.9 billion and also became the largest shareholder in The Economist Group.
(Reporting by Agnieszka Flak; editing by Jason Neely)
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