Grenland Group Acquires Minox Technology

Grenland Group signed a share purchase agreement to acquire all the shares of the technology company Minox Technology AS. The company is located at Notodden, and the former owners were Four Seasons Private Equity AS and Norsk Hydro Technology Ventures AS, as well as other minority shareholders.

Minox Technology AS has 12 permanent employees. The company estimates a turnover in 2006 of approximately NOK 70 million, with an expected operating margin of approximately 10%. The purchase price is NOK 28 million, which will be paid with NOK 21 million in cash and through issue of new shares with a value of NOK 7 million.

The purchase of Minox Technology AS is a result of a clear growth strategy. Grenland Group ASA is actively working to increase the contents of technology and products in the deliverables, as well as obtaining a leading-edge competence within selected market segments.

Minox Technology AS delivers complete process solutions for extraction of oxygen in seawater used in the oil and gas industry. Technology development was initiated by Norsk Hydro in the mid 1980-ies. As a result of research and development, this is now a proven technology with more than 10 process units in operation in the global oil and gas market. The de-oxidized seawater is used for injection into oil wells in order to obtain enhanced production from the reservoir. Following a successful turnaround process lasting for two years, the company today has a solid order reserve, e.g. a delivery for the world's largest FPSO, Agbami. Agbami is under construction in South Korea, and will be in operation outside Nigeria from 2008.

The Minox system for deoxigenation of sea-water is highly competitive because of the very small footprint, height and weight of the processing system.

Grenland Group considers this niche technology as very exciting, and believes the product has a very large potential for global application in oil fields. There is today a considerable industry focus on increased production from existing oil fields. Grenland Group is present in many international markets with its products and services, and the Minox technology will be an interesting addition to the product range. Most of Minox' previously delivered process packages have also been fabricated by Grenland Group. For the time being, Grenland Group ASA is building the modules for the Agbami field.

Grenland Group is a full-service engineering, procurement and construction company, aiming to enhance the business of its customers. Grenland Group is a result of a market-driven demand for complex solutions, providing technology and fabrication services. Grenland Group consist of two divisions: Oil & Gas and Process & Industry, and the Group have today 850 employees. 2005 turnover is estimated at NOK 1 billion.