The business

Viking is a market leader in the provision of ‘mission critical’ mooring solutions to the oil and gas sector for key assets such as semi-submersible drilling rigs, drillships and floating accommodation platforms. The services which Viking provides include initial design and engineering assessments, computer modelling and simulation, procurement of equipment, mobilisation, equipment rental and demobilisation through to spooling and equipment testing.

Viking had several features that initially drew our attention and convinced us that it would make an exciting investment. These included being the clear market leader; excellent growth opportunities, such as the use of alternative mooring technologies like fibre rope; further potential expansion into the Mediterranean and Far East; as well as the potential for in-fill acquisitions and capex-led growth.

At the time of investment, market trends were also highly favourable and forecast to continue for the foreseeable future as a result of the growing demand for worldwide crude oil and natural gas, higher oil prices, significant forecast increases in deepwater drilling and increasing seabed congestion.

The incumbent senior management team possessed deep industry experience, with the majority having over 10 years service within Viking. To complement them we sourced an Executive Chairman to guide the company onto the next level.

Under Inflexion’s ownership, the business has invested significant sums into capital expenditure and opened overseas offices. EBITDA has grown from £5.2 million to a forecast £28.5 million in 2008.

The investment

The £22 million buyout was led by John Hartz, Tim Smallbone and Catherine Richards. Tim and Catherine have joined the Board of Directors. Funds managed by Inflexion invested £9 million. Bank facilities were provided by RBS.