KKR backs Aberdeen oil business

The firm will back the company with more than £100m of equity from its balance sheet

Kohlberg Kravis Roberts has acquired a majority stake in OEF Offshore Group, a global provider of specialist equipment to the offshore oil and gas industry.

Financial details of the transaction were undisclosed, but KKR will invest more than £100 million (€126 million, $171 million) of equity from its balance sheet, according to a source familiar with the matter.

Investors in KKR’s European Fund IV will be offered the opportunity to participate in the investment, the source added. KKR’s fourth European fund is currently in market attempting to raise €3 billion, PEI reported earlier.

KKR declined to comment.

Aberdeen-based OEG has regional hubs in the main offshore oil and gas regions including Singapore, Australia, the US and 20 further locations worldwide.

OEG manufactures and leases specialist cargo carrying units used by oil and gas operators and their service providers to transport equipment and supplies to and from rigs and platforms. In addition, OEG has a fleet of modular workspaces which serve as temporary offices or laboratories by engineers or other personnel undertaking work on offshore platforms or rigs.

KKR’s European Fund IV has a smaller target than its predecessor, which was a $6.79 billion 2008-vintage. In recent months KKR has been exiting some of the companies in its Europe Fund III. In March
KKR sold its stake in helicopter business Avincis for €2 billion to Babcock International Group.

Other exited or partially exited businesses from this fund include Pets at Home, which KKR listed in London in March, and music rights management company BMG, which it sold in the same month.