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Inflexion Private Equity, the mid-market private equity investor, today announces the sale of Viking Moorings (Viking) to HSBC Private Equity. Viking, based in Aberdeen and Stavanger is the market leader in the design, hire and sale of mooring systems to the global offshore oil and gas industry. The exit represents a 12x return on investment and is one of the most successful deals in Inflexion’s history.
Inflexion led the £22m MBO in January 2006 with an 80% shareholding in the company, and were represented on the board by Tim Smallbone and Catherine Richards. Since then, Viking’s profits have grown substantially and employee numbers have doubled to over 100.
Inflexion drove the business expansion through a substantial strengthening of the management team. It also encouraged an aggressive capital expenditure programme, with £50m capex spent over 3 years.
Further value was added to the core moorings equipment supply business with Inflexion overseeing the development of design and advisory packages and supporting international expansion, building a strong global presence and most recently opening an office in Singapore to service the growing markets in Asia, Australia and China Pacific regions.
Inflexion will continue to be part of the future of Viking Moorings, investing £25m back into the business in order to participate in the next phase of investment. Tim Smallbone will remain on the board.
This is Inflexion’s second exit this month, with the sale of Healthcare Knowledge International achieving a multiple of 2.7x on 3rd July.
Simon Turner, Managing Partner of Inflexion Private Equity, said: “Viking Moorings is the market leader in a strong industry and has grown enormously in the last three years. We’re pleased that Inflexion has been able to play a key role in that growth, driving capital expenditure and international expansion such that the company has seen a very strong growth in 3 years. Viking epitomises the benefits private equity investment can bring to a business – having a strategic vision for a business with the money to back it up. We’re delighted to be retaining an investment in Viking and look forward to working with HSBC”.