HitecVision sells Vector Technology Group and Icarus
HitecVision is pleased to announce the exit of SPG AS through the sale of Vector Technology Group and Icarus S.A. for a total consideration of NOK 1.3 billion (177 million/ $ 226 million). The buyer of Vector Technology Group is the German industrial company, Freudenberg Group. Icarus, a Belgium trading company, has been sold to management and a local co-investor.
SPG AS has two independent business units: Vector Technology Group (Vector), manufacturing and supplying proprietary pipe coupling products, and Icarus, trading and supplying a wide range of piping materials and speciality valves. Vector has its head office in Norway, with manufacturing units in Norway, Wales and Malaysia and sales operations in Australia, Brazil, Scotland and USA, while Icarus is based in Belgium, with subsidiaries in Korea, Russia and Japan.
During HitecVision’s ownership SPG has achieved significant top line growth and more than a doubling of profitability. The company has expanded globally and strategically refocused from a topside business to a subsea solution enabler. Management efforts and investments have been given to this development; which has proven to be a successful organic growth strategy.
HitecVision has during the ownership period gone from being a minority to a majority shareholder. In the aftermath of the financial crisis, SPG experienced challenging market conditions and as a result revenues and profitability suffered. HitecVision together with management took charge and continued to invest in the company to develop existing and new products as well as enter new markets.
There has been substantial interest for both companies in SPG from financial as well as strategic buyers. However, in keeping with our traditions, HitecVision has given priority to the best long term owner, rather than focusing on price only. We are confident that the new owners of both VTG and Icarus will enable the companies to reach their full potential.
HitecVision is specialist investor that invests in and develops high growth, niche oriented companies in the oil and gas industry companies similar to Vector and Icarus. Our role as an owner is to transform companies, strengthening their value proposition, and within a defined period, sell them onwards to the industry.
The transaction is subject to customary merger clearance from Norwegian competition authorities.