Fon Energy swoops for C-Ventus in offshore wind O&M play
Merger is described as 'first stepping stone' in a strategy aimed at building a European O&M player
Norway’s Fon Energy Services is buying Dutch offshore wind farm services company C-Ventus to create what the pair claim will be a leading O&M player within offshore wind.
Fon Energy Services, which has three decades of O&M experience in markets including Norway, Sweden, Denmark, and Germany, is backed by Norwegian industrial group IKM and Oslo-listed industrial investment company Akastor.
C-Ventus provides O&M services for the offshore wind market providing, among other things balance of plant-services for both topside and subsea equipment, installation support and decommissioning services. It is owned by marine engineering, civil engineering and offshore oil and gas services group, DISA International and carries out project management and engineering from its Dutch headquarters.
Under the terms of the transaction, Fon Energy Services will acquire 100% of the shares in C-Ventus from DISA International.
Consideration consists primarily of shares in Fon Energy Services resulting in DISA holding 22.67% of class A shares in the company, alongside IKM and Akastor.
The merger is meant to take advantage of what is expected to be a booming O&M sector for offshore wind.
“Combining a strong presence in the North Sea and the financial muscles of Fon Energy Services with C-Ventus’ European track-record and scalable operating model with in-house project management and engineering, enable us to strengthen our integrated service model and deliver cost-efficient O&M service operators across Europe,” said Torben Hald, CEO of Fon Energy Services.
C-Ventus will operate under the Fon Energy Services brand after completion of the merger but the new entity will adopt the former's operating model and expand this to the North Sea region and elsewhere in Europe.
“Our joint plan is to take C-Ventus’ well proven and highly efficient O&M operating model, apply it to Fon Energy Services, and use it as a catalyst for geographical expansion to the rest of Europe,” said Didier de Graaff, managing director of DISA International.
“We look forward to building an even stronger O&M player together with Fon Energy Services.”
The parties have not disclosed the financial details of the transaction.
“Although the transaction is legally structured as an acquisition, from an operational perspective it is a merger of competence, manpower, businesses, and brands. We look forward... to developing the group together with the two powerful and highly reputable co-owners IKM and Akastor,” said De Graaff.
Fon Energy describes its ambition as including “industrialising and digitising the O&M segment of the wind industry to increase efficiency and reduce cost of operations.”
The Norwegian company described partnering with C-Ventus as "the first stepping stone of an M&A strategy aimed at building up a large, leading European O&M player within offshore wind.”
It also promised to contribute with the owners' industrial backing as well as extensive customer networks in the region, with plans to expand market presence in the UK, Belgium, and the Netherlands.
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