V.People UK to Acquire AGR's RC Consultants

The AGR Group has agreed to sell its RC Consultants subsidiary to Scotland-based V.People Ltd. for an enterprise value of NOK 220 million.

AGR Consultants will revert to its former name of RC Consultants AS (RCC). RC Consultants, which employs 500 specialist technical and administrative personnel, provides engineering consulting services for the oil and gas industry on the Norwegian Continental Shelf. V.People, part of the V.Holdings group of companies, has global coverage, with offices in 68 locations in over 30 countries, serving 300 major clients and employing 1,600 permanent staff and nearly 25,000 contract staff.

"We look forward to becoming part of V.People and we will continue to maintain our quality service to existing clients as well as develop new business opportunities," commented Terje Pedersen, Executive Vice President, AGR Consultants.

Sverre Skogen, Chief Executive of AGR Group, said: "We are pleased to have reached this agreement. With increased emphasis on high-end technology offerings, innovative business models and international growth, the RC Consultants business did not really fit with the long-term business strategy of the AGR Group. However, we have always recognized the strengths and achievements of the operation. We are sure that V.People will allow AGR Consultants to capitalize on its strong market position and high-quality people."

Services provided by AGR Consultants are largely centered on engineering and consultancy support, drilling rig support and operations support. Employees are typically assigned to exploration and field development projects. Clients employing the services of the company include: Aibel, AkerKvaerner, BP, ConocoPhillips, ExxonMobil, Fabricom, Halliburton, Norsk Hydro, Shell, Statoil, Talisman and Total.

Danske Markets Corporate Finance has been retained as AGR's exclusive financial advisors for the transaction.