Norway: Aker Solutions Buys LMV

Norway: Aker Solutions Buys LMV

Aker Solutions is acquiring the mechanical workshop company Lyngdal Mek. Verksted (LMV), thereby increasing its capacity to assemble, test and overhaul drilling equipment especially for the North Sea market.

This is the second recent acquisition by Aker Solutions’ drilling technologies business in its home region, following the takeover of Herman Hansen Mek. Verksted, another assembly and test workshop, in March 2012. The transaction values for the deals are undisclosed.

“The takeover of Lyngdal Mek. Verksted is the latest example of our strategic moves to boost our capacity to serve drilling customers in the North Sea market. The acquisition of LMV will help us take a larger share of the upcoming overhaul market, facilitated by our growing installed base,” said Thor Arne Håverstad, head of Aker Solutions’ drilling technologies business.

The market outlook for drilling systems and equipment related activities is positive, both with regards to overhaul of installed equipment and new-build orders. Additionally, rigs with Aker Solutions’ equipment on delivered during the 2007-2008 boom are soon up for their first five year re-classification.

Increased capacity

The takeover of LMV is mainly expanding the Aker Solutions’ overhaul and upgrade capacity, as the company’s facilities in Kristiansand are expected to be fully utilised by new-build activities. The acquisition will also increase Aker Solutions’ flexibility and ability to further expand its production competence and facilities in Brazil and Asia Pacific.

“We are pleased to become an integrated part of Aker Solutions,” says Ingvald Ingebretsen, managing director and previous owner of LMV. “Our employees will no doubt remain a significant asset to Aker Solutions’ current staff of skilled workers, thanks to their extensive experience in overhauling Aker Solutions drilling equipment. Our workforce is stable, and could potentially grow even further.”

The acquisition of Herman Hansen secures Aker Solutions’ drilling technologies capacity and delivery capability as well as local assembly and testing competence for critical mechanical equipment.

About Lyngdal Mek Verksted

Lyngdal Mek. Verksted (LMV) is a mechanical workshop company located in Lyngdal in southern Norway. LMV currently employs 61 skilled workers plus contracted staff in disciplines such as hydraulics, mechanical engineering, welding, sheet metal, and more.

The facilities of LMV are well suited for large overhaul jobs with about 6 500 m2 of workshop area. Over the past five years the company has been a key sub-supplier to Aker Solutions’ drilling technologies business. LMV’s current scope of work for Aker Solutions includes assembly and testing, as well as overhaul and upgrade work on drilling equipment and special orders for rigs on the Norwegian Continental Shelf.

Completion of the agreement is subject to clearance by Norwegian competition authorities.

Source: Aker Solutions, May 16, 2012