Aker Solutions to acquire majority stake in Brazil's C.S.E.

OSLO, Norway -- Aker Solutions is to to buy 70% of Brazil's C.S.E. Mecânica e Instrumentação Ltda, building on a strategy to expand its services business in key international markets.

The agreement includes an option to purchase the remaining 30% of the company three years after the expected close of the transaction by the end of the first quarter of 2017. The parties agreed to not disclose the purchase price.

The acquisition gives Aker Solutions access to Brazil's growing market for servicing existing oil and gas fields. C.S.E., which had revenue of BRL 322 million in 2015, provides maintenance, assembly, commissioning and crane operation services at offshore and onshore facilities.

"Aker Solutions has established a solid presence and reputation in Brazil's oil and gas market over the past 40 years and entry into the country's brownfield segment is an attractive growth opportunity," said CEO Luis Araujo. "Joining forces with a successful local player like C.S.E. fits well with the internationalization of our services business, allowing us to bring our competence, knowledge and experience within this field to this important and growing region."

C.S.E., whose headquarter is in Pinhais in the Parana state, has a backlog of BRL 855 million and a track record of delivering consistently high-quality services to customers including state producer Petrobras. The company's fabrication shop in Rio das Ostras is located near Aker Solutions' subsea services facility.

To ensure continuity, the owners of C.S.E., Altair Dietrich, the CEO, and Luiz Joanello, the CCO, will stay on with the company. C.S.E. will remain a separate legal entity with a management team consisting of personnel from each company.

"By combining the strengths of both companies, we will expand our capabilities and create significant value for our customers," said Dietrich. "Teaming up with Aker Solutions is a huge step for the company and puts us in the next league in terms of competing for even larger and more complex contracts."