Weekly merger, acquisition, deal update: September 28
This week Morrissey Goodale tracked one domestic deal and two international transactions. This brings the total year-to-date deal count in the United States to 129, up 6% over the 122 domestic deals tracked through the same period in 2011. Including the U.S., the total global deal count is now 238, down 3% from the 246 global deals tracked through the same period last year.
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Leading international geophysical services and equipment provider CGGVeritas (Paris, France) entered into an agreement to acquire the 2,500-person geoscience division of global geoscience and geotechnical consultancy Fugro (Leidschendam, The Netherlands). Through the transaction, which excludes Fugro’s multi-client library and Ocean Bottom Nodes business, CGGVeritas will become a fully integrated Geoscience company with a leading position in the integrated geology and geophysics and reservoir market. The gross amount of the transaction is $1.54 billion, to be paid for in cash and financed through both equity and debt. For the twelve month period ending December 31, 2011 Fugro’s applicable geoscience division generated revenue of $1.28 billion and EBITDA of $206 million. Link to details
Leading international energy services company Wood Group (Aberdeen, Scotland) agreed to acquire Mitchell’s Oil Field Services (Mitchell’s) (Sidney, MT), a provider of maintenance, installation and fabrication services in the oil-rich Bakken shale region of North Dakota and Montana. Mitchell’s, currently owned by private equity group Stone Arch Capital (Minneapolis, MN), will operate within Wood Group PSN and will complement the division’s existing operations and maintenance, construction supervision and survey services in the region. Wood Group is a 41,000 person international energy services company that features three businesses providing engineering, production support and maintenance and repair services to the oil and gas and power generation markets worldwide. The acquisition of Mitchell’s is in line with Wood Group’s strategy to expand presence in the US oil shales and follows the firm’s purchase earlier this year of Duval (Houston, TX), which services the Eagle Ford shale region in South Texas. Link to details
Global multi-discipline technical consulting firm The AF Group (AF) (Stockholm, Sweden) acquired 100-percent of the shares in Demikon D-Miljo (Malmo, Sweden), a 16-person environmental engineering company focused on soil investigations, remediation inspections, licensing, remediation solutions and environmental building investigations. The acquisition is in line with The AF Group’s continued ambition to become a leading player in environmental consultancy market. Link to details
In an interesting note for the industry (though not considered a deal for the purposes of this update), engineering software provider AVEVA (Cambridge, United Kingdom) signed a strategic Memorandum of Cooperation (MOC) with China Nuclear Power Design Company (CNPDC) (Beijing, China), China’s first professional nuclear power design company and a strategically central entity within the GuangDong Nuclear Group, China’s second-largest nuclear player. As part of the MOC, CNPDC will employ AVEVA’s PDMS software for its Westinghouse and Chinese 3rd generation nuclear projects. CNPDC features full certification in engineering consulting (Class A for nuclear thermal power, Class C for hydroelectric power), engineering design (Class A for thermal power generation, Class A for nuclear reactor engineering, Class B for construction engineering) and a design license in mechanical equipment for civil nuclear safety. Link to details