Akastor, a Norway-based oil service investment company, is set to sell KOP Surface Products to The Weir Group for $114 million on a debt- and cash-free basis.
KOP is headquartered in Singapore and is a supplier of surface wellheads, trees, valves and actuators to the oil and gas industry both offshore and onshore.
“KOP has done an excellent job in recent years of improving operations and expanding its footprint while adapting to challenging market conditions,” said Kristian Røkke, CEO of Akastor.
“Weir is an ideal owner of KOP and is well positioned to take the company to the next level. We are pleased with the value created for Akastor through this transaction and would like to thank Gordon Cameron and the KOP organization for their contributions,” he said.
Gordon Cameron, CEO of KOP Surface Products said:”We are thankful for the support Akastor has given us over the past few years which has put us in a position where we see exciting future opportunities for our business. We look forward to the next part of our transformation journey together with Weir.”
The transaction will generate an estimated accounting gain of approximately NOK 700 million to Akastor to be recognized upon closing, expected to occur in 3Q 2017.