First Reserve sells UK subsea stake to KKR

The UK’s Acteon Group, a provider of subsea services in the upstream oil and gas sector, will have a new set of private equity sponsors.

Kohlberg Kravis Roberts (KKR), the US-headquartered alternative assets business, has agreed to acquire a majority stake in the UK’s Acteon Group from fellow US investment firm First Reserve Corporation. The precise stake acquired, and the price paid for it, were not disclosed.

Acteon provides subsea services in the oil and gas sector, described in a statement from First Reserve as a “new and expanding part of the upstream industry”. Acteon’s executive management will remain in place following the deal, which is expected to complete by the end of this year following approvals. Houston-based private equity firm White Deer Energy is investing alongside KKR and management in the deal.

“Since our initial investment in 2006, Acteon has completed eight acquisitions, quadrupled its operating profits and significantly expanded its geographic footprint,” said First Reserve managing directors Will Honeybourne and Jeff Quake in the statement.

Founded in 1989, Acteon is a service provider to the global offshore oil and gas and renewable markets. It offers subsea services for life-of-field operations from exploration through decommissioning. Based in Norwich, England, it has facilities in Brazil, Singapore, UAE, Malaysia, China, the US and Germany.

JPMorgan Cazenove and Simmons & Company International jointly advised First Reserve and Acteon on the deal, while KKR was advised by HSBC Bank.

KKR’s debut infrastructure fund, KKR Global Infrastructure Investors, closed with $1 billion in committed capital in June this year.