Rolls-Royce announces investment in ODIM ASA ("ODIM")
Monday, 29 June 2009
Rolls-Royce, the global power systems company, today announced that it has agreed to purchase a 33 per cent holding in the ordinary shares of ODIM, a leading provider of specialist marine handling systems to the offshore oil and gas industry.
The acquisition is of 15,545,634 ordinary shares and will be purchased for investment purposes from Aker Solutions ASA (“Aker Solutions”) for a cash consideration of NOK 45 per share and a total consideration of NOK 700m (circa £66m). The agreement is conditional on the approval of the investment by the Norwegian competition authority. Rolls-Royce does not currently hold any shares or have any rights over shares in ODIM.
Rolls-Royce has a strong and growing presence in the offshore oil and gas sector. This investment creates the opportunity for Rolls-Royce and ODIM to work more closely together to provide customers with a broader product and service offering, including ODIM’s automated handling systems for seismic and subsea applications.
Rolls-Royce has agreed to make an additional payment to Aker Solutions if, within nine months of completion of the agreement, it acquires any further shares in ODIM or makes an offer for further ODIM shares at an offer price of more than NOK 45 per share.
John Paterson, President Rolls-Royce Marine, said: “ODIM has a strong market position and a good product and service portfolio with significant long-term prospects. The offshore sector is core to our marine strategy and our investment in ODIM will facilitate further cooperation between our two companies.”
- Rolls-Royce, a world-leading provider of power systems and services for use on land, at sea and in the air, has established a strong position in global markets – civil aerospace, defence aerospace, marine and energy. In each of these sectors, Rolls-Royce offers value-added long-term service agreements for customers and operators.
- The company has a broad customer base including more than 600 airlines, 4,000 corporate and utility aircraft and helicopter operators, 160 armed forces, more than 2,000 marine customers, including 70 navies, and energy customers in nearly 120 countries.
- With facilities in 50 countries, Rolls-Royce employs 39,000 people worldwide and has businesses headquartered in the UK, United States, Canada, Germany, Scandinavia and China. This global presence allows the Group to access long-term international growth opportunities with its technology, presence, partnerships and people.
- Annual revenues were £9.1 billion in 2008, of which 52 per cent came from services, generating underlying profit before taxes of £880m. The firm and announced order book stood at £55.5 billion, providing visibility of future activity levels.
- The Rolls-Royce Marine business employs over 8,000 people in 34 countries with its main manufacturing centres located in Scandinavia, the UK, the United States and increasingly Asia.
- Rolls-Royce is a significant employer in Norway, with over 2,700 people in seventeen facilities, including the headquarters of its offshore and merchant marine businesses. Since the acquisition of Vickers in 1999, it has continued to invest in the business and intends to develop it further.
- Rolls-Royce is a world leader in marine solutions, providing products, service and expertise to more than 30,000 commercial and naval vessels in the offshore, merchant, naval and submarines markets. Rolls-Royce products include a wide range of deck machinery such as winches and offshore vessel systems. The full range of Rolls-Royce marine capabilities comprises ship design, propulsion systems featuring diesel engines and gas turbines, propellers, thrusters and water jets, and a wide range of other marine control systems, equipment and machinery
- ODIM ASA is a Norwegian technology company which develops and sells advanced automated handling solutions, primarily cable handling systems and winches for use on offshore and naval vessels. (www.odim.com)
- In the year to 31 December 2008, ODIM reported revenues of NOK 2,136 million (£200 million) and profit before tax of NOK350 million (£33 million).