KKR Partners With OEG Offshore Group

An OEG Offshore Group manufactured box for carrying tubular goods, such as a bottom hole assembly.

Investment firm KKR announced today it has acquired a majority stake in Aberdeen-based OEG Offshore Group, a company that supports the offshore oil and gas by manufacturing and leasing Cargo Carrying Units (CCUs) to offshore oil and gas operators.  These CCUs are essentially purpose-designed and built boxes that are loaded with cargo on to the deck of an offshore supply boat and then offloaded via crane to a floating facility.  These open or closed boxes carry anything from drill pipe, tools, subs, pressurized canisters, trash compactors, drilling cuttings, spare parts and more.  The company also supplies modular workspaces, or purpose designed and furbished containers, that serve as temporary labs or offices for offshore contractors.

In a phone conversation with John Heiton, CEO of OEG, he notes that Evercore Partners handled the transaction between his company and KKR, a process which took about three months from start to finish.

“We have achieved significant growth in OEG to date but our teams have the appetite to accelerate our further development through both organic and acquisitive means. We believe that KKR will be an excellent partner to achieve those aims, given their global network and experience as a leading investor in the energy services sector,” commented Heiton in a statement on his company’s websiite.

Dominic Murphy, Member and Head of KKR operations in the United Kingdom, and Josselin de Roquemaurel, Director and Head of Energy for KKR Europe, said: “OEG has built an impressive track record of growth and has an exciting development path ahead, expanding its fleet, geographic coverage, and suite of products and services. We are enthusiastic about partnering with John Heiton and his team who combine deep industry expertise with strong commercial acumen and relationships in the offshore oil and gas industry and logistics sector.”

OEG has regional offices in Singapore, Australia, the U.S. and 20 further locations worldwide.  KKR notes the executive management of OEG Offshore Group will retain a significant holding in the company.

KKR has a track record of successfully investing in growth companies servicing the global offshore energy sector, including investments in Acteon, RigNet, Avincis (Bond Aviation) and Weststar.

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