Akastor — M&A Activity 2019

Jun 7, 2019

Akastor ASA: MHWirth strengthens onshore aftermarket services through acquisition of Bronco Manufacturing

Akastor ASA: MHWirth strengthens onshore aftermarket services through acquisition of Bronco Manufacturing

Akastor ASA's (OSE: AKA) wholly owned subsidiary MHWirth AS ("MHWirth"), has

today entered into agreements with Bronco Holdings LLC for the effective

purchase of 100% ownership interests in Bronco Manufacturing LLC ("Bronco") for

a total consideration of USD 31.5 million (the "Transaction"). The agreements

are formally entered into through MHWirth's US subsidiary, MHWirth Inc.

Bronco is a leading provider of critical aftermarket solutions and products to

the global onshore and offshore drilling market.

MHWirth's aim is to increase Bronco's market share globally through utilizing

MHWirth's established offshore relationships and to strengthen the position in

the US onshore market by leveraging the relationships of MHWirth's new

management team. By utilizing the competencies and supply chain of Bronco,

MHWirth also sees potential on current MHWirth equipment, as well as the

potential to re-engineer relevant equipment to make it more suitable for onshore

applications.

In addition to this, Bronco will strengthen MHWirths's presence in North America

and increase local manufacturing capabilities in the Houston region.

Merrill "Pete" Miller, Executive Chairman of MHWirth, said:

"I have known Bronco and their reputation within our industry for a number of

years. We were very lucky when the prospect of a combination with Bronco and

MHWirth became possible. Getting these two companies working together opens up

strategic opportunities in the land and offshore drilling equipment space that

were not easily available to either company separately. Our respective areas of

expertise fit together incredibly well, providing us each with new market,

product and supply chain possibilities."

Max Mantooth, CEO & Co-Founder of Bronco Manufacturing, said:

"I and all of my employees are extremely excited to join with Pete Miller and

the entire MHWirth team. We feel that MHWirth provides us with the chance to

expand our sales and customer base worldwide, land and offshore. The MHWirth

Executive Management Team has an incredible track record of growth, one that

fits the vision I have had for this company for a number of years."

Eirik Bergsvik, CEO of MHWirth, said:

"I am pleased that we have been able to make this deal happen. This acquisition

is an important part of our strategy, as announced when our Chairman Pete Miller

joined earlier this year, and it will contribute in the growth of our

aftermarket and repair business. We hope to be able to quickly expand the Bronco

business."

Closing of the Transaction took place simultaneous with the effective signature

of the agreements. Bronco will be consolidated into MHWirth Segment in Akastor

Group.

Further details on the Transaction and the operations of Bronco are included in

the attachment.

For further information, please contact:

Leif Borge

Chief Financial Officer

Mobile: +47 917 86 291

E-mail: leif.borge@akastor.com

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.

This information is subject to the disclosure requirements pursuant to section

5 -12 of the Norwegian Securities Trading Act.