16 May 2011

Stork extends global footprint with acquisition of the RBG Group in partnership

Stork and Arle today announced the acquisition of RBG Limited, the UK based supplier of inspect, assess and repair services to the global energy industry. RBG Limited, which in 2010 had revenues of c.£300m, has been acquired as a strategic addition to Stork Holding B.V., a leading knowledge-based asset integrity management company with 2010 revenues of c.€1,000m. The acquisition was made through London Acquisition Luxco Sarl, the ultimate parent of Stork. The cost of the acquisition and funding structures are not being disclosed.

The acquisition includes all of RBG’s primary activities in the UK, Europe, Americas, Caspian and the Middle East, as well as 4,500 personnel. The addition of RBG’s portfolio, which includes complex support services such as oil platform decommissioning, fabric maintenance, inspections services and access solutions, will provide Stork’ clients with additional expertise and more choice from a single trusted partner. RBG’s clients will gain access to asset integrity management solutions focusing on maintenance, modification and overhaul of existing facilities for the oil & gas, power and chemicals industries.

“The acquisition of RBG is an exciting milestone in the group’s growth strategy, said Sjoerd Vollebregt, Chief Executive Officer of Stork B.V. “Under Doug Meikle’s leadership, Stork has built a solid platform for accelerating Stork’ growth in key markets. At Stork, we will continue to foster and support the entrepreneurial success story of Stork, thereby reinvigorating the historic values that this company was built on.”

“This acquisition is consistent with our strategy to enhance our service offering whilst expanding our global footprint,” said Doug Meikle, Chief Executive Officer of Stork. “RBG is a solid and well-structured business with a history of strong performance. RBG’s talented employees and strong client relationships align well with Stork’ strategy of partnering with our clients by listening, thinking and doing. We look forward to partnering with operators and primary contractors, and helping them realise safe, consistent, productive asset integrity management.”

RBG’s operations significantly increase Stork’ global reach and capabilities. Clients based in the Americas, Europe, the Middle East, Caspian and Asia Pacific, will continue to receive local delivery of integrated services delivered according to uniformly world-class standards.

“The acquisition of RBG is good news for our global community,” said Dave Workman, Chief Executive Officer of RBG. “For a number of years, we have been working hard to develop the business in terms of HSEQ performance, our people strategy, our integrated service offering and our commitment to innovation. Our efforts have resulted in our business being recognised as a leading support partner committed to building the geographical footprint needed to serve the international energy industry. This deal marks the next stage of our journey, bringing greater opportunities for our employees and significant benefits to our clients through the delivery of an enhanced and unrivalled service capability. I have no doubt that this is a positive move for all. Together, we are ready to drive our business to the next level of international growth and development."

Rutger Bruining of Arle: “This is our first acquisition post our spin-out from Candover Investments, and is very much in line with our active management strategy. The acquisition of RBG is strategically important to Stork, part of the Stork Group, which is one of the most prominent and exciting companies in our portfolio.”

“We are delighted to have supported RBG since its creation in 2004 following the merger of two 3i portfolio companies, Rigblast and MESL, with Mach-Ten,” said Mark Kerr, 3i Director on behalf of the vendors. “Over the past 7 years, the business has performed extremely well with both EBITDA and international revenue having more than trebled. During our investment, we have worked with management to expand RBG’s product offering and grow its international footprint to create what is today the UK’s leading fabric maintenance business with a strongly growing international presence.”

Simmons & Company International acted as M&A advisor, Albacore Partners as debt advisor and Dundas & Wilson as legal advisor to the buyers. 3i was advised by KPMG as M&A advisor and Addleshaw Goddard as legal advisor. The financing of the acquisition is arranged and underwritten by Rabobank.