Aberdeen’s OEG Group has been snapped up by American investors.
Asset management firm Apollo will acquire a majority stake in the company for a valuation of more than $1 billion – around £770m.
Founded in 1973 and based in the Granite City, OEG has more than 1,300 employees and operates in more than 65 countries.
The firm moved into its new headquarters at ABZ Business Park in Dyce last year.
The group also has offices in Kintore, Portlethen and Bridge of Don.
Apollo is set to acquire a majority stake in OEG, which provides services for offshore oil, gas and wind production, from Oaktree Capital Management.
The deal comes at a time when a large number of investors are entering the energy sector to take advantage of the growing demand for electricity from data centres and AI.
Apollo has described the acquisition as a “tremendous opportunity.”
OEG says the exciting new chapter will not change its goal to provide customers with the quality service they expect.
Aberdeen energy firm snapped up in ‘billion-dollar’ deal
OEG operates one of the world’s largest fleets of cargo carrying units (CCUs), with over 75,000 units handling cargo to and from offshore energy installations.
Over the past 50 years, OEG has become a pivotal link in the global energy supply chain.
OEG’s buyer Apollo has put about $58bn into climate and energy transition investments over the past five years.
According to Companies House, its latest accounts for the period March to December 2023 showed revenues of $320.6 million and a pre-tax loss of $15 million.
Acquisition of Aberdeen’s OEG is a ‘tremendous opportunity’
John Heiton, CEO of OEG, said: “Since our company’s founding, we have worked hard to establish OEG as a global leader in delivering core services throughout the offshore energy value chain.
“As energy producers across Europe and around the globe continue to invest in the energy transition, we are committed to expanding and enhancing our capabilities as a key partner.
“We look forward to working with Apollo as we enter this new and exciting chapter for our business and remain focused on supporting our customers with the same quality service they have come to expect.”
Wilson Handler, Partner at Apollo, said: “John and team have built OEG into a global leader and trusted provider of offshore equipment and services, with an integrated business model that has scaled across cycles.
“We see a tremendous opportunity to invest in the Company’s future growth as secular tailwinds drive demand for services enabling efficient energy production and renewable power.
“Bringing to bear the scale of Apollo’s integrated platform and deep expertise in energy services, we look forward to working with the talented team at OEG to unlock value for its various stakeholders and loyal customer base via organic and inorganic channels.”
The sale will go ahead two years after Oaktree, a US investment manager, partnered with OEG’s management to buy the company in 2023.
Oaktree and other shareholders will retain a minority equity interest in the company.
Conversation