Akastor ASA: Frontica Advantage joins NES Global T
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Akastor ASA (OSE: AKA), an oil service investment company, has entered into a definitive agreement with the owners of NES Global Talent (NES) to join its Frontica Advantage (Advantage) business with NES. Akastor will become a shareholder in the combined company. The combination creates a global leader in staffing services to the oil and gas industry.
Established in 1978, NES is a manpower specialist with more than 45 offices in 28 countries across Europe, Africa, the Americas, Asia, Australia and the Middle East. NES has experienced strong growth in revenue and operational results over the past ten years and enjoys long-standing relationships across the oil and gas, power, construction and infrastructure, life sciences, manufacturing and IT sectors worldwide. NES aims to accelerate Advantage's transformation process and expand its business into new segments and geographies going forward. AEA Investors, a leading global private investment firm, is the main owner of NES.
"NES and Advantage are complementary businesses and form a powerful combination that will benefit our customers going forward with NES's global operating platform," says Kristian Røkke, CEO of Akastor. "This transaction will create a larger, more diversified business that will be better positioned for a stronger future than could be achieved on a stand-alone basis."
Tig Gilliam, CEO, NES Global Talent comments: "We are delighted to welcome the Advantage team to the NES Global Talent family. With this acquisition, we look forward to bringing the full resources of NES to Advantage clients on a global basis. In this most challenging market for Energy clients, geographic scope and breadth of capability is essential to deliver operational excellence and efficiency to our contractors and clients. Adding Advantage to the NES proposition further strengthens our leading position in the human capital solutions market for top engineering talent."
Initially Akastor will receive a 15.2% ownership position in the combined entity with potential to increase its ownership depending on the growth of Advantage over the next three years. Revenues of the combined company for the last twelve months ending September 2016 were USD 1 063 million and EBITDA of USD 57 million for the last twelve months ending September 2016, and net debt of USD 117 million. The transaction will generate an estimated accounting gain of approximately NOK 430 million to Akastor to be recognized upon closing.
The completion of the transaction is subject to customary closing conditions, including competition filing in Norway. Closing of the transaction is expected to take place in Q1 2017. ABG Sundal Collier ASA has acted as exclusive financial adviser to Akastor and BA-HR lawfirm as legal adviser.
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Media Contact:
Akastor Tore Langballe, Head of Communications +47 907 77 841 tore.langballe@akastor.com
About Akastor Akastor is a Norway-based oil-services investment company with a portfolio of industrial holdings and other investments. The company has a flexible mandate for active ownership and long-term value creation. www.akastor.com
About NES Established in 1978, NES Global Talent is an award winning manpower specialist that provides candidates across the Oil & Gas, Power, Construction & Infrastructure, Life Sciences, Manufacturing, Chemicals, Mining and IT sectors worldwide. NES provide guaranteed staffing solutions, sourced from a global talent pool by a dedicated, discipline specific team of over 500 consultants.
NES has over 45 offices in 28 countries across Europe, Africa, the Americas, Asia, Australia and the Middle East. NES Global Talent can offer a full range of staffing solutions: Contract, Permanent (Direct) Hire, Managed Solutions, or a fully outsourced service. These services are complemented by an industry leading support service and mobility package to ensure clients keep hold of the top talent in a compliant manner for as long as they need it. http://www.nesglobaltalent.com/
This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.
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