Norwegian investor HitecVision has bundled existing oil and gas companies in its portfolio together form a new industrial group in order to help its members diversify into offshore wind.
The new conglomerate will be called Moreld and is made up of 20 SMEs featuring 3,600 employees. Its constituent companies have a 2019 revenue of NOK 8.8 billion (€875 million).
HitecVision said it has given the companies a mandate to “pursue entrepreneurial ideas and seize the market opportunities” in both offshore renewables and aquaculture.
“Each of the companies will continue to operate under its existing name, but the size and financial robustness of the new group will put them in better position to establish new business areas, jointly or individually,” HitecVision partner André Ølberg said.
Hitec was until recently looking to divest some of the businesses, but struggled to find good value due to uncertainty in the oil and gas business.
“We have therefore decided to stop the sales processes and instead plan to generate value over a much longer ownership period,” HitecVision senior Partler Atle Eide said.
“We will use the knowledge base that has been built up in these companies to create growth and interesting new jobs, while at the same time meeting our obligations to the investors in our funds.”
All companies will continue to work in oil and gas, but Moreld chief executive Endre Folge said its members will bring their “core values” to renewables.
“In today’s competitive environment, size is becoming ever more important, and in Moreld, we are creating this size. In addition to the technological know-how existing in these companies, they are also characterized by an active focus on sustainability, including operative experience,” Folge said.
Companies in the conglomerate include shipping consultancy Global Maritime and anchor specialists Vryhof.
Moreld will be 100% owned by HitecVision and the formation of the group will formally complete in Q2 2020.