Norwegian firm branches out into subsea engineering and construction sphere with acquisition of Ocean Installer

Norway-headquartered multi-disciplinary engineering group Moreld, owned by McIntyre Partners and Velocity Partners, has sealed a deal with HitecVision to bring Ocean Installer, a compatriot marine construction and operations player, into its fold, in a bid to establish a diverse offshore engineering and project execution powerhouse, capable of providing top-side, subsea, marine engineering, and maintenance and construction services.

This acquisition is set to expand Moreld’s service range into subsea engineering and construction arena, as Ocean Installer specializes in the construction, installation, maintenance, and repair of offshore subsea infrastructure, such as subsea umbilicals, risers, and flowlines (SURF), mooring and FPSO tow operations, renewables and inspection, maintenance, and repair (IRM).

Geir Austigard, CEO of Moreld, commented: “We are pleased to welcome Ocean Installer into the Moreld Group. This acquisition marks a significant step forward in our strategic growth plan and underlines our commitment to delivering exceptional value to our customers.

“Together, we will leverage our combined expertise and resources to drive innovation, expand our market reach, and create new opportunities for success. Ocean Installer is an excellent addition to the Moreld family and will further strengthen our international presence.”

According to Tor Espedal, Senior Partner at HitecVision, the marriage of these two companies will give birth to “a significant player in the offshore market, well positioned for future opportunities.” Moreld provides maintenance, modification, and operations (MMO) services through its subsidiary, Moreld Apply, and marine engineering and assurance services through its subsidiary, Global Maritime, which together serve a range of blue-chip customers such as Equinor, TotalEnergies, Shell, ExxonMobil, Aker BP, and Chevron.

Kevin Murphy, CEO of Ocean Installer, said: “We are proud to now join the Moreld Group alongside such well respected companies as Moreld Apply and Global Maritime. Together we will offer a wider range of services to our clients and take on larger and more complex projects.”

The entrance of Ocean Installer into Moreld is anticipated to create an engineering and project execution player with over 2,300 employees, widen long-term customer relationships, and place the company to reap the benefits from investment poured into the Norwegian Continental Shelf (NSC) and global offshore markets.

Furthermore, Moreld has raised $225 million through the issuance of senior secured notes maturing in 2029 to finance the acquisition, refinance existing debt, and enhance liquidity. With over $600 million in pro-forma revenue for 2023 and a contracted backlog exceeding $1 billion, the combined business is perceived to be well-positioned to benefit from increased activity in offshore energy markets.

Ocean Installer will be integrated into the Moreld Group as a standalone sister company alongside Moreld Apply, Global Maritime, and their subsidiaries. With the transaction papers signed and sent to the Norwegian competition authorities for approval, the acquisition is anticipated to be wrapped up by the end of June 2024.

Ocean Installer has won several new assignments over the past few months, including a new subsea line modification (SLM) project with Equinor. Recently, the firm joined forces with ALP Maritime Services, putting three vessels into play to support its FPSO towing and hook-up assignments.