Weather provider StormGeo Group made its international breakthrough under the wings of RCP VII. The fund entered StormGeo as the majority owner in 2011. Since then, the company has built a global reach through 320 employees in 14 countries. EQT Mid Market is now acquiring the majority ownership of 55 percent of the shares. This will be a total exit for RCP VII (50%) and Norwegian broadcaster TV 2 (5%). "It feels like it has been more than three years, because StormGeo has been through such an eventful journey. The company has become a world leader in its field and we are proud of having been part of this development, together with a dedicated management team, employees and owners," says Christian Melby, managing partner in Reiten & Co.
“StormGeo has grown from 75 employees and 8 offices to 320 employees in 22 offices, from Tokyo to Anchorage during Reiten’s ownership. They have been a crucial partner in our strongest period of growth since inception. Reiten & Co have contributed with their deep experience to execute the growth plan to become the leading global supplier of decision support to weather sensitive operations. On behalf of all the employees at StormGeo, we would like to thank Christian Melby and his team for great support”, says Kent Zehetner, CEO of StormGeo.
Growth in rough weather
StormGeo has been able to grow due to its advanced and highly developed products and services that among more make clients understand and adjust to climate changes and more extreme weather. Also, StormGeo helps shipping companies to reduce their carbon footprint and rig companies to improve health and safety for its personnel.
Over the last years the company has become an important partner for clients within the shipping and offshore industries, renewable energy, media and aviation.
“Climate changes and extreme weather is an increasingly important factor for many businesses. This has created a strong demand for the technology and knowledge which StormGeo possesses. When we entered the company back in 2011 this was a key part of our investment thesis. I am confident that the demand will continue to grow in the years to come”, says Melby.
Strategic acquisition
StormGeo made a transformational transaction earlier this year when it acquired US based company Applied Weather Technology Inc (AWT). After the transaction StormGeo became the global leader in servicing the maritime and offshore industries in their weather sensitive operations.
StormGeo has also made acquisitions in key regional markets like the Gulf of Mexico and the Middle East, which has been important to strengthen its global position and to further capitalize on quality products with a convincing track record.
Solid investment for Reiten & Co
StormGeo had 2013 pro forma sales of NOK 330 million and a normalized EBITDA of NOK 99 million.
“The StormGeo exit provides our investors with strong returns in a relatively short holding period. Once again we have demonstrated to be a right partner for ambitious growth companies. This journey gives inspiration and we will now put in our capacity and effort to continue developing other portfolio companies and looking at new opportunities”, says Melby.
The parties have agreed not to disclose the transaction value. The transaction is expected to be completed during Q2 2014.
About StormGeo
Since 1997 StormGeo has developed into a global contributor of support systems and risk predictions within the meteorological sector. The group provides services globally to sectors such as oil & gas, shipping, renewable energy, media and aviation. StormGeo has offices in Bergen, Oslo, Stavanger, Stockholm, Copenhagen, Aberdeen, Hamburg, Baku, Dubai, Seoul, Singapore, Shanghai, Tokyo, Rio, Silicon Valley, New York, Houston and Anchorage.
About Reiten & Co
Reiten & Co is a Nordic private equity company which advises funds with NOK 3.5 billion under management. Reiten & Co primarily invest in medium sized Norwegian and Nordic companies. The firm has investment experience from a range of industries and primarily invests in oil & offshore services, IT and business and financial services with revenue between NOK 100 million and NOK 1 billion. In 2013, Reiten & Co fund portfolio companies had combined revenue of NOK 8.5 billion ($1.4bn) and approximately 4,000 employees.
Contacts:
Reiten & Co, Christian Melby, Managing Partner, Phone: + 47 958 13 277
StormGeo, Erik Langaker, Chairman, Phone: + 47 976 94 555
StormGeo, Kent Zehetner, CEO, Phone: +47 918 13 762
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