Deal-chasing private equity giant Kohlberg Kravis Roberts (KKR) is set to acquire Norwegian shipowner Ocean Yield. The two companies announced Monday that U.S.-based KKR will take control of Ocean Yield for a cash payment of $4.70 per share. The offer price implies a total valuation of about $830 million.
The deal has been approved by Aker Capital AS – which holds a 62 percent controlling stake in the firm – and will result in delisting Ocean Yield from the Oslo Stock Exchange. Barring unforeseen circumstances, the companies expect to complete the deal in the fourth quarter of this year.
“We have been impressed by what Ocean Yield’s management team and employees have achieved since the company was formed a decade ago through the strategy of investments in modern fuel-efficient vessels,” said Vincent Policard, KKR Partner and Co-Head of European Infrastructure.
He added that with the acquisition, KKR intends to continue building a leading ship-leasing company by providing access to long-term capital.“We are pleased that KKR, a leading global investment firm with a strong track record in successful partnerships, is becoming a strategic partner to us,” said Lars Solbakken, Ocean Yield. He added that by leveraging KKR’s capital, expertise, and network, Ocean Yield will be well-positioned to build a substantially larger company.
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