Private Equity News & Analysis

Nordic completes €270m marine rescue mission

The private equity firm has provided both debt and equity to acquire offshore energy service business Master Marine.

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Stockholm-based Nordic Capital has acquired Master Marine, an offshore energy service company, for a consideration of €270 million.

The deal will “finally create a stable financing structure for the company going forward”, Tom Vidar Rygh, a partner at Nordic Capital, said in a statement.

Master Marine: Funding base securely installed

The €270 million price tag comprises a financing package of €130 million in new equity and €140 million in senior secured loans.

Nordic will also acquire the company’s outstanding high yield bonds for an aggregate price of €30 million that can be converted into equity at a later stage. Following the completion of the acquisition of various bonds relating to the business, Nordic Capital will have an 89 percent ownership of the business.

The investment has been made from the €4.3 billion Nordic Capital Fund VII, which closed in November 2008.

The widespread existing shareholders – Master Marine had previously been traded over-the-counter – will see their ownership diluted.

Headquartered in Oslo, Master Marine builds heavy structures for the oil, gas and offshore wind power industries.