Moreld, a multi-disciplinary engineering group serving top-tier customers in offshore energy and marine industries, is pleased to announce to have entered into an agreement with HitecVision to acquire Ocean Installer, a leading provider of marine construction and offshore energy solutions.
Moreld has a long history and established presence on the Norwegian Continental Shelf (NCS) and provides maintenance, modification, and operations (MMO) services through its subsidiary, Moreld Apply, and marine engineering and assurance services through its subsidiary, Global Maritime. The companies serve a range of blue-chip customers such as Equinor, Total Energies, Shell, ExxonMobil, Aker BP, and Chevron. Moreld was acquired from HitecVision in January 2024 by the investment groups, McIntyre Partners, and Velocity Partners.
The acquisition of Ocean Installer will expand Moreld’s service range into subsea engineering and construction services, create an engineering and project execution powerhouse with over 2,300 employees, expand long-term customer relationships, and position the company to benefit from significant investment in the NCS and global offshore markets.
Ocean Installer was founded by private equity firm HitecVision in 2011 and quickly established itself as a major player in the subsea installation market for offshore energy and renewables. The company specializes in the construction, installation, maintenance, and repair of offshore subsea infrastructure including subsea umbilicals, risers, and flowlines (SURF), mooring and FPSO tow operations, renewables and inspection, maintenance, and repair (IRM). Ocean Installer has 280 employees across headquarters in Stavanger, Norway, and with offices in Oslo, Houston, Aberdeen, and Dubai.
Concurrent with the acquisition, Moreld closed a private offering of US$225 million aggregate principal amount of senior secured notes maturing in 2029, placed with institutional credit funds. Proceeds for the offering are used to finance the acquisition, refinance existing debt facilities, and materially enhance liquidity, with company holding a significant cash balance at closing. Given the high visibility provided through the contract backlog and the asset light business model, the company expects to quickly pay down debt in the coming years. The combined business generated over US$600 million in pro-forma revenue in 2023 and has over US$1 billion in contracted backlog.
“We are pleased to welcome Ocean Installer into the Moreld Group" says Geir Austigard, CEO of Moreld. "This acquisition marks a significant step forward in our strategic growth plan and underlines our commitment to delivering exceptional value to our customers. Together, we will leverage our combined expertise and resources to drive innovation, expand our market reach, and create new opportunities for success. Ocean Installer is an excellent addition to the Moreld family and will further strengthen our international presence” he continues.
"We are very proud to be the sellers of Ocean Installer. The company is led by a unique management team and has accomplished everything we set out to achieve when founding it. Now, teaming up with another recent former portfolio company will create a significant player in the offshore market, well positioned for future opportunities. We wish them all the best." says Tor Espedal, Senior Partner at HitecVision.
"We are grateful to HitecVision for their unwavering support and guidance during the last 13 years. Under HitecVision, we successfully created a company capable of executing major offshore projects globally on behalf of the world’s largest energy companies. We are proud to now join the Moreld Group alongside such well respected companies as Moreld Apply and Global Maritime. Together we will offer a wider range of services to our clients and take on larger and more complex projects" says Kevin Murphy, CEO of Ocean Installer.
As part of the acquisition, Ocean Installer will be integrated into the Moreld Group as a standalone sister company alongside Moreld Apply and Global Maritime, along with their respective subsidiaries. Ocean Installer will retain its recognized brand name and continue its operations seamlessly.
The transaction papers have been signed and sent to the Norwegian competition authorities for approval. The acquisition is expected to be finalized by end of June 2024.
Advisors to Moreld include Wikborg Rein, Carter Ledyard & Milburn, Marriott Harrison, SR1 Markets, Pareto, and PricewaterhouseCoopers.
