ODIM Agrees to Acquire ABAS & Aker Brattvaag for NOK 80 Million
ODIM has reached agreement on acquiring ABAS Crane of Aukra and Aker Brattvaag Winch in Sovik for a total of NOK 80 million. These two companies deliver such products as special cranes, lifting systems and specialized electrical winches for ships and offshore installations.
Together with ODIM's unique ODIM CTCU technology and systems for demanding installation assignments in deep water, these products will represent a complete system package for customers in the deepwater market. The acquisition is thereby strategically significant for ODIM's commitment to this fast-expanding sector.
"Continued growth within all market areas, has resulted in increased activity in the After Sales and Service division, both nationally and internationally. This acquisition pro-actively adds substantial capacity and expertise to help realize the full potential within this important market area. The combination of our unique ODIM CTCU technology and ABAS Crane's offshore cranes will make our customers extremely effective for the installation phase in deep water," says ODIM CEO Jogeir Romestrand.
"This is a segment where we have previously communicated that we see a substantial potential. An important objective for the acquisition is to launch a crane which can increase the efficiency of deepwater marine operations." He adds that this transaction will provide ODIM with important expertise and capacity, and that it will immediately strengthen the company as a complete system supplier of aft deck solutions in various market segments.
"We have great ambitions for ABAS Crane and Aker Brattvaag Winch," says Jogeir Romestrand. "These relate both to developing the companies and their products, and to building further on their specialist teams and expanding their workforces. The two new additions to our group will strengthen our professional team and complement the leading-edge expertise we possess."
ODIM is acquiring the two companies from Aker's wholly-owned Aker Capital subsidiary for NOK 80 million. ABAS Crane and Aker Brattvaag Winch had first half of 2007 sales of approximately NOK 60 million.
"This is a good ownership solution for two industrial companies with strong niche positions in international maritime growth markets," comments Leif-Arne Langøy, chairman and chief executive of Aker.
"Together with the employees, we've contributed over many years to building up and improving ABAS Crane and Aker Brattvaag Winch. ODIM is the perfect owner for continuing to develop these businesses."
A due diligence process has been completed, and the ODIM board has approved the acquisition. Since the transaction involves the purchase of activities from a shareholder, however, the take-over requires formal approval by an extraordinary general meeting of ODIM. This is due to take place in the second half of November.