Riverside europe enters the oil and gas intervention
06 July 2005
The Riverside Company, the largest private equity firm specializing in acquisitions at the smaller end of the middle market, has closed another acquisition in Europe. Riverside has acquired Danish manufacturer Welltec, a leading-edge provider of intervention tools and services for the oil and gas industry. The acquisition was made from the private equity firm’s most recent European fund, Riverside Europe Fund II (“REF II”). Babson Capital Management LLC, an investment advisory firm based in Cambridge and Springfield, Mass., provided equity as a co-investor in the transaction on behalf of its parent, the Massachusetts Mutual Life Insurance Company. Riverside is proud to announce that Jørgen Hallundbaek, Founder and CEO of Welltec A/S, has contributed 45% of the equity and will continue to lead the company as CEO.
Welltec, established in 1994, develops and manufactures the world’s leading conveyance systems for intervention in horizontal and deviated oil and gas wells. Welltec’s main product, Well Tractor, has been a key factor in the success of the company because of the product’s high reliability, proven technological design and substantial cost-effectiveness.
“We are very pleased with the acquisition of a company that embodies an entrepreneurial spirit and that operates in the dynamic environment of oil and gas intervention,” said Kai Köeppen, a Riverside Partner and lead transactor on this acquisition. “The solution-driven character of Welltec is very appealing to Riverside, as is the company’s impressive operating track record. Welltec makes delivering service quality and innovation its priority, an effort supported by its substantial research and development budget.”
“We will continue to introduce new products that expand the state of the art in horizontal and highly deviated well intervention,” said Jørgen Hallundbaek, Founder and CEO. “Partnering with an international and growth oriented investor like Riverside will help Welltec accelerate its path towards becoming a broad range provider of well intervention services and solutions to the global oil industry.”
Working with Kai Koeppen on this acquisition were Trey Vincent, Principal, and Volker Schmidt, Principal. Tony Cabral, head of Riverside’s European operation, and Piotr Misztal contributed to the success of the transaction.
Karsten Langer of M&A International (Brussels) and Peter Søgaard of Nordic Corporate Finance (Copenhagen) sourced the transaction and advised Riverside. The lender on the transaction was HSH Nordbank, Copenhagen branch. Mezzanine was arranged by Finnish based Eqvitec Technology Mezzanine Fund II.
The Riverside Company
The Riverside Company is the largest private equity firm focused on the small end of the middle market and is one of the industry’s most experienced leveraged buyout investors. Riverside specializes in acquiring premier companies with strong management teams to build companies through acquisitions and value added growth. Since 1988, the firm has invested in 107 transactions with a total value of $2.1 billion, sales of $2 billion, EBITDA of $200 million and 10,000 employees. Riverside holds nearly $1.3 billion capital under management allocated in six funds, large staff in eight offices (Budapest, Prague, Warsaw and Munich in Europe and New York, Cleveland, Dallas and San Francisco in the U.S.), and long-standing relationships with partner lenders. The firm has produced top quartile returns for its investors, which are among the world’s leading pension funds, endowments, funds-of-funds, insurance companies and banks. More information on The Riverside Company can be found at www.riversideeurope.com and www.riversidecompany.com.
Welltec
Headquartered in Copenhagen, Denmark, Welltec was founded in 1994 by Jørgen Hallundbaek – who continues as the company’s CEO. Welltec has received numerous awards for the quality of its products and services. Today, the company employs 175 employees. For more information, visit www.welltec.dk .
