Winning ways - Petrofac
Petrofac, the highly successful international services provider to the oil and gas industry, partners with us to make transformational changes – resulting in a successful IPO.
When we first invested in May 2002, Petrofac was already a well-managed, multi-national engineering, procurement and construction business.
However, the company’s management, headed by CEO Ayman Asfari, had greater ambitions. He wanted to strengthen, restructure and transform the business. Because of our sector-based approach to investing with its oil, gas and power experience, it helped convince management that it was the right investment partner. We provided a €31m funding package in the form of a flexible loan. This could be converted to 13% of the equity which was provided to enable the ambitious agenda.
In addition to providing flexible capital, through our extensive senior executive networks, we introduced Michael Press as an independent Non-executive Director and Keith Roberts, as the CFO, of the business.
Since joining both executives
have helped create value. “Michael was instrumental in helping the management team to develop the business strategy and he has provided an independent voice in the boardroom. Keith Roberts put in place rigorous financial controls and has driven M&A activities,” says Graeme Sword, Partner and Head of 3i, Oil, Gas and Power.
Enhancing international appeal Working with us, Petrofac successfully acquired two additional businesses; PGS Production Services and RGIT Montrose, a leading North Sea training business. Both businesses were previous 3i investments so our knowledge of the businesses and management teams were invaluable when making the two
acquisitions. The purchase of RGIT Montrose has enabled Petrofac to develop a word-class training business with strong demand internationally to train local talent.
Given the strong market appetite for Petrofac’s increased capability, we sold its entire stake in the company when the business was successfully floated – raising €1.1bn on the London Stock Exchange in 2005.
“3i’s support was invaluable. They helped strengthen the board and provided us with the financial support for the initial reorganisation of thebusiness. But one of the key things for the owners was that 3i was able to help unlock a great deal of value for all the shareholders, and it really has been a textbook example of how a relationship with a knowledgeable private equity investor can provide mutual benefits.”
Keith Roberts, CFO, Petrofac