add energy | Further International Expansion
10.10.2010
add energy group as (add energy) has today completed a merger with IPS Australasia Pty Ltd. (IPS) and its wholly owned subsidiary International Safety and Risk Management Pty Ltd (ISRM) – the IPS Group, with offices in Perth, Melbourne and Singapore.
 
The IPS Group is a leading provider of project management (Well Management) services to the onshore and offshore industry in Australia and Southeast Asia. IPS and ISRM supply separately and together integrated projects and services within Well Management, risk management and safety / HSEQ. The customer list includes companies such as CNPC, Chevron, DAEWOO International, BHP and Premier Oil. The IPS Group has a total of over 70 employees and consultants. IPS Group’s home markets are regions expected to demonstrate a significant growth in the coming years.

Stig H. Christiansen, CEO of add energy, says "IPS is a company that fits very well with our vision and strategy. It complements our existing operations, geographic presence and customer base. The merger represents a further strengthening of add energy's international structural growth that began with the purchase of add latent in 2009."

add energy already has a significant international position in the field of Well Control, and the company has been central in the work of killing and investigating the wells in the accidents at both the Macondo field in the Gulf of Mexico this year and at the Montara field in Australia last autumn.

Chairman Per Arne Jensen, who is Partner in add energy's main shareholder Progressus, says in connection with the merger, "We are convinced that the industry is moving towards more emphasis on integrity, security and risk management - accelerated through the Macondo and Montara accidents, and add energy possesses high skills, good references and a strong position in these fields - a position strengthened significantly through this merger."

Both IPS and ISRM have historically shown good growth and are now growing rapidly also in other regions than their home markets. IPS alone demonstrated 5-times turnover from MAUD 4 to MAUD 20 (MNOK 114) from 2006 to 2009. The IPS Group expects a turnover of MAUD 30 (MNOK 170) with a good profit margin in the next 12 month period.

Included in the merger add energy will take a 30% stake in Ajapa - Integrated Project Management, a joint venture in India that supplies services within Well Management in India, the Middle East and other markets. The Indian market is also experiencing strong growth and Ajapa seeks to increase its presence in the market - based on their strategic contract with Oil India Limited amongst others.

IPS’ Managing Director Dermot O'Keeffe will join the management team in add energy with responsibility for operations in IPS / ISRM. The companies will be operated as independent units with their own profit responsibility also after the transaction.

After the transaction add energy will have a turnover of approx. MNOK 450 and will have 225 employees / consultants - where up to 100 will have their permanent base outside Norway.

The transaction also represents a step forward with regards to add energy's strategy of taking the company public, but the company will seek a further doubling of sales before listing is implemented. add energy will continue to seek to accelerate development of its niche position internationally, while the company's leading position on the Norwegian Continental Shelf shall be fortified.

In connection with the transaction add energy has completed a private placement directed at today's shareholders. The issue of MNOK 25 is fully subscribed.


 
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