Aker Solutions agreed to buy oil services provider Reinertsen to build on its position as a maintenance and modifications supplier offshore Norway, the company said March 30.

The asset deal will give Aker Solutions ownership of Reinertsen’s Norwegian oil and gas services business for NOK 212.5 million (US$24.9 million).

Reinertsen is the third-largest maintenance and modifications supplier offshore Norway with about 700 employees. The company’s order backlog contains key maintenance and modifications contracts with Statoil ASA, including a minimum six-year framework agreement awarded in December 2015. It also has some smaller subsea services and engineering contracts, the release said.

“Combining our capabilities will boost our presence in the Norwegian maintenance and modifications market, helping to safeguard core competencies at key locations and positioning us for a market recovery,” Aker Solutions CEO Luis Araujo said in a statement.

The companies worked together from 2002 to 2010 on projects offshore Norway through the Aker Reinertsen joint venture. Reinertsen employees in Trondheim and Bergen, where the company's main offices are located, will be moved to local Aker Solutions offices.

Reinertsen had revenue of about NOK 800 million (US$94 million) in 2016 and is expected to contribute positively to Aker Solutions’ earnings from 2018, Aker said.

The agreement is expected to close second-quarter 2017 and will exclude Reinertsen's liabilities as of Dec. 19, 2016, when the company went into debt negotiation proceedings. The acquisition is subject to approval by the Norwegian competition authorities.

—Staff Reports

Offshore