According to HitecVision, the unified company Moreld will have close to 3,600 employees and had combined revenue of NOK8.8bn ($950m) in 2019
HitecVision has decided to merge 20 of its portfolio companies that are currently focused on serving the Norwegian oil and gas industry into a new industrial group called Moreld.
The European private equity investor said that the unified company will have close to 3,600 employees and had combined revenue of NOK8.8bn ($950m) in 2019.
Moreld is expected to give the resources required for the merged oil service and oilfield technology companies for accelerating their development into the renewables market and other segments of the energy sector.
HitecVision said that activity levels in the oil industry are expected to stay solid for years to come. However, in the longer term, the world will move into a new era where oil and gas will be less significant, said the Norwegian capital market company.
It revealed that most of the companies merging into Moreld have already initiated developing new offerings in renewable energy and other sectors. However, as it is a major transition, smaller companies will especially find it challenging, said the private equity investor.
Moreld is 100% owned by HitecVision funds
Moreld’s role is expected to be in giving strength and momentum in the transition process to guide its constituent companies towards new business areas.
HitecVision said that longer trends support sustainable projects on sea or on land. The investor believes that offshore wind and offshore aquaculture are among the main global growth areas where the Moreld firms can apply their unique core competencies and experience.
HitecVision partner André Ølberg said: “The name Moreld reflects that this is a Norwegian knowledge industry related to the ocean. Moreld will build on the competencies and market positions of each company in the portfolio.
“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.”
The merger of the companies into the new industrial group, fully owned by HitecVision funds, will be subject to routine conditions and approvals and is likely to be completed in the second quarter of 2020.