Norwegian oil and gas-focused private equity firm HitecVision is merging Technor, an industrial safety equipment manufacturer, with Simtronics, an Oslo-listed manufacturer of fire safety equipment.
Technor will be sold to Simtronics for a mixture of cash and shares totalling NOK187 million (€21 million; $27 million). The deal will result in HitecVision owning one-third of Simtronics’ share capital. Simtronics currently has a market cap of NOK184.1 million.
Technor has been owned by HitecVision’s $300 million HitecVision Private Equity IV Fund since its previous parent company was taken private in 2006 for NOK560 million. Last year HitecVision split Technor into three separate companies, two of which it retains in its portfolio.
Following the transaction Simtronics’ chief executive officer Rune Martini will remain in position at the combined entity, while Technor’s president and chief executive officer, Ola Fladmark, will assume the role of executive vice president.
“This is a merger of two equal parties,” said Fladmark, “and we have identified considerable synergies in areas such as product development, marketing and sales.”
HitecVision is currently investing its $800 million fifth fund, which it closed in February 2008.