3i Infrastructure takes control of ESVAGT

4C Offshore | Tom Russell
By: 03/12/2021 ESVAGT
3i Infrastructure plc (3i Infrastructure) announces that it has agreed to acquire the stake in ESVAGT owned by its co-investor AMP Capital. This will result in 3i Infrastructure holding 100% of the equity in ESVAGT.

This further investment is expected to be £268 million. Completion is subject to certain third party consents and is expected to take place in the first quarter of 2022.

In its half year results announcement, 3i Infrastructure said that a strategic review of its holding in ESVAGT was in progress and that as part of that review, offers had been invited. However, the Company retained the options of continuing to hold its 50% stake, to sell, or to offer to buy the AMP Capital stake. Binding offers for 100% of the equity were received but not at a compelling price for 3i Infrastructure, and so the Company elected to offer to buy the AMP Capital stake.

ESVAGT develops and operates a number of Service Operation Vessels (SOVs) for the offshore wind industry. The company is also a provider of emergency rescue and response vessels (ERRV) and related services to the offshore energy industry in and around the North Sea and the Barents Sea.

During this period, ESVAGT has delivered six new SOVs, and has entered into a joint venture with Crowley in the USA to support the emerging offshore wind energy market there. 

Richard Laing, Chair of 3i Infrastructure, commented: “ESVAGT’s transition into a market leader in European offshore wind has been a major achievement. We believe that it is well-placed to benefit from continuing attractive growth prospects in the wind sector and we are delighted to be acquiring 100% of the business.”

Phil White, Managing Partner and Head of Infrastructure, 3i Investments plc, Investment Manager of the Company, added: “We very much look forward to continuing to work with CEO Peter Lytzen and the ESVAGT team to take advantage of the future growth of the offshore wind market, both in Europe and the US.”

ESVAGT CEO, Peter Lytzen, said: "ESVAGT has for a while been subject to a strategic sales process undertaken by our owners 3i and AMP. The process has now been concluded and 3i has decided to buy AMP’s 50% share so ESVAGT in the future will be fully owned by 3i.

"This decision is a testimony to the strong potential 3i see in ESVAGT and a genuine trust in our organization, which we only can appreciate. From a practical point it also means we can continue developing our company “business as usual” and protect the strong ESVAGT values, which has been the foundation for our success since 1981.

"We wish 3i good luck as owners of ESVAGT and we will together show that the full investment into our company was a wise decision."