Flux Group has entered into an agreement to acquire all the shares in Bergen-based Norwegian Piping. This is the second acquisition by Flux in the space of a few months, and an important step in realising the Group’s strategy of becoming a leading supplier of equipment and services to the oil and gas industry.
Established by private equity company HitecVision in the spring of 2014, Flux Group has a strategy of acquiring and further developing companies with attractive positions in selected niches of the oil and gas industry’s sub-supplier market. The group acquired valve company Valvision (formerly IKM Valves) in August, and the acquisition of Norwegian Piping provides a bridgehead in the growing market for pipe and piping components.
“Our start-up has been exciting and hectic, and I’m very pleased with the two acquisitions we’ve made so far”, says Ådne Grødem, chief executive of Flux Group. “Both companies have attractive market positions on the Norwegian Continental shelf and internationally, and are based in western Norway.”
“Norwegian Piping has built a solid position over the last few years both in Norway and internationally, with strong management and good profitability. We give great weight to these criteria in building and developing our Group, and I‘m confident that the acquisitions we’ve made so far provide a foundation for both organic and strategic growth.”
Established in 2004, Norwegian Piping has achieved strong and profitable growth during its 10-year history. It will have a turnover of approximately NOK 450 million this year, up by 65 percent from 2013, and good profitability. This strong growth is the result of a purposeful commitment to international markets and 21 dedicated employees. The company’s head office is at Sotra outside Bergen.
Norwegian Piping has been owned by four employees and three external shareholders. Gert Christian Strindberg remains managing director.
“We regard Flux Group, with its backing from the reputable entrepreneurs in HitecVision, as an ideal partner in realising our ambitions for the future”, says Strindberg. “We’ve reached a size which makes us a serious challenger in an expanding sector. With Flux as our new owner, we’ll be even better placed to exploit current progress in both Norwegian Piping and the market.”
Plans call for closure of the acquisition early November 2014.
For more information or questions, please contact:
Ådne Grødem, CEO, Flux Group, tel: +47 907 53 999
More information about Norwegian Piping: