Dealmaker KKR Acquires Norway’s Ocean Yield for $830M

Deal-chasing private equity giant Kohlberg Kravis Roberts (KKR) is set to acquire Norwegian shipowner Ocean Yield.

The two companies announced Monday that U.S.-based KKR will take control of Ocean Yield for a cash payment of $4.70 per share. The offer price implies a total valuation of about $830 million.

The deal has been approved by Aker Capital AS - which holds a 62 percent controlling stake in the firm - and will result in delisting Ocean Yield from the Oslo Stock Exchange. Barring unforeseen circumstances, the companies expect to complete the deal in the fourth quarter of this year.

Established in 2012, Ocean Yield has seen its fleet increase from three to 63 vessels. The company’s fleet include oil tankers, liquefied natural gas carriers, container ships, offshore vessels, and an FPSO, which it charters out to shipping companies on long-term contracts.

“We have been impressed by what Ocean Yield’s management team and employees have achieved since the company was formed a decade ago through the strategy of investments in modern fuel-efficient vessels,” said Vincent Policard, KKR Partner and Co-Head of European Infrastructure.

He added that with the acquisition, KKR intends to continue building a leading ship-leasing company by providing access to long-term capital.

KKR has $429 billion in assets under management as of June this year in sectors cutting across capital markets, infrastructure, energy, real estate and more. Its infrastructure arm currently manages over $38 billion, and it has made 52 investments globally over the last 13 years.

“We are pleased that KKR, a leading global investment firm with a strong track-record in successful partnerships, is becoming a strategic partner to us,” said Lars Solbakken, Ocean Yield. He added that by leveraging KKR’s capital, expertise and network, Ocean Yield will be well positioned to build a substantially larger company.