Offshore Equipment Firm In Buy-Out Backed By HSBC Private Equity

Viking Moorings, the Aberdeen-based marine equipment supplier, has undergone an institutional buy-out backed by HSBC Private Equity and the management team with funding from Clydesdale Bank.

The transaction allows the majority shareholder, Inflexion Private Equity, to realise most of its investment in the business. Clydesdale, HSBC, Lloyds and Royal Bank of Scotland have contributed equally to a debt funding package to support the deal.

Founded in 1985 as Balmoral Marine, part of the Balmoral Group, Viking is now a market leader in the provision of moorings equipment to the oil and gas sector for rigs and floating accommodation platforms. It also sells mooring equipment and navigational aids and provides design, installation and inspection services.

Inflexion invested in the business in 2006 when it supported a buy-out from the Balmoral Group led by the current management team..

Since then Viking has expanded beyond its long-established North Sea market. The company has set up new bases in Singapore and Western Australia, in addition to those in Aberdeen and Stavanger, Inflexion will retain a 20 per cent stake in the business.

The Corporate and Structured Finance team at Clydesdale Bank, through its Manchester and Aberdeen offices, arranged the funding package. Roddy Kilpatrick, director for acquisition finance, said: “Viking Moorings plays a key role in oil and gas exploration and is a trusted adviser to many of the world’s leading drilling contractors and oil and gas companies.

“Inflexion has invested heavily in the business and pursued a very successful growth strategy. This transaction will allow it to realise most of its investment and partner with a sponsor in HSBC which is well positioned to support the business’s continued  international expansion, particularly in Asia Pacific and West Africa.

“As part of the National Australia Bank group, Clydesdale Bank is particularly well placed to help support the business’s expansion in Australia. The deal also highlights our experience and specialist knowledge of banking businesses within the offshore oil and gas sector.”

Mahmoud Atalla, Head of HSBC Private Equity (UK), commented: "We are delighted to be supporting CEO Wolfgang Wandl and his team in the buyout of Viking. Viking is a market leading business run by an exceptional team and we are confident that our partnership with Viking and Inflexion will assist with the business’s further penetration of key emerging markets, where Viking has already successfully exported its highly successful and resilient North Sea-based business."

Maclay Murray & Spens provided legal advice to the banking club. Financial due diligence was provided by PwC and commercial due diligence by oil and gas sector specialists Infield.