Akastor — M&A Activity 2016

Dec 8, 2016

Akastor ASA: Frontica Advantage joins NES Global Talent to create a leading staffing service provider for the Oil and Gas sector

Akastor ASA: Frontica Advantage joins NES Global Talent to create a leading staffing service provider for the Oil and Gas sector

Akastor ASA (OSE: AKA), an oil service investment company, has entered into a

definitive agreement with the owners of NES Global Talent (NES) to join its

Frontica Advantage (Advantage) business with NES. Akastor will become a

shareholder in the combined company. The combination creates a global leader in

staffing services to the oil and gas industry.

Established in 1978, NES is a manpower specialist with more than 45 offices in

28 countries across Europe, Africa, the Americas, Asia, Australia and the Middle

East. NES has experienced strong growth in revenue and operational results over

the past ten years and enjoys long-standing relationships across the oil and

gas, power, construction and infrastructure, life sciences, manufacturing and IT

sectors worldwide. NES aims to accelerate Advantage's transformation process and

expand its business into new segments and geographies going forward. AEA

Investors, a leading global private investment firm, is the main owner of NES.

"NES and Advantage are complementary businesses and form a powerful combination

that will benefit our customers going forward with NES's global operating

platform," says Kristian Røkke, CEO of Akastor. "This transaction will create a

larger, more diversified business that will be better positioned for a stronger

future than could be achieved on a stand-alone basis."

Tig Gilliam, CEO, NES Global Talent comments: "We are delighted to welcome the

Advantage team to the NES Global Talent family. With this acquisition, we look

forward to bringing the full resources of NES to Advantage clients on a global

basis. In this most challenging market for Energy clients, geographic scope and

breadth of capability is essential to deliver operational excellence and

efficiency to our contractors and clients.  Adding Advantage to the NES

proposition further strengthens our leading position in the human capital

solutions market for top engineering talent."

Initially Akastor will receive a 15.2% ownership position in the combined entity

with potential to increase its ownership depending on the growth of Advantage

over the next three years. Revenues of the combined company for the last twelve

months ending September 2016 were USD 1 063 million and EBITDA of USD 57 million

for the last twelve months ending September 2016, and net debt of USD 117

million. The transaction will generate an estimated accounting gain of

approximately NOK 430 million to Akastor to be recognized upon closing.

The completion of the transaction is subject to customary closing conditions,

including competition filing in Norway. Closing of the transaction is expected

to take place in Q1 2017. ABG Sundal Collier ASA has acted as exclusive

financial adviser to Akastor and BA-HR lawfirm as legal adviser.

- END -

Media Contact:

Akastor

Tore Langballe, Head of Communications

+47 907 77 841

tore.langballe@akastor.com

About Akastor

Akastor is a Norway-based oil-services investment company with a portfolio of

industrial holdings and other investments. The company has a flexible mandate

for active ownership and long-term value creation.

www.akastor.com

About NES

Established in 1978, NES Global Talent is an award winning manpower specialist

that provides candidates across the Oil & Gas, Power, Construction &

Infrastructure, Life Sciences, Manufacturing, Chemicals, Mining and IT sectors

worldwide. NES provide guaranteed staffing solutions, sourced from a global

talent pool by a dedicated, discipline specific team of over 500 consultants.

NES has over 45 offices in 28 countries across Europe, Africa, the Americas,

Asia, Australia and the Middle East. NES Global Talent can offer a full range of

staffing solutions: Contract, Permanent (Direct) Hire, Managed Solutions, or a

fully outsourced service. These services are complemented by an industry leading

support service and mobility package to ensure clients keep hold of the top

talent in a compliant manner for as long as they need it.

http://www.nesglobaltalent.com/

This information is subject to the disclosure requirements pursuant to section

5 -12 of the Norwegian Securities Trading Act.