FREUDENBERG OIL & GAS EXPANDS ITS POSITION AND EXPERTISE IN THE UPSTREAM SEGMENT OF THE OIL AND GAS MARKET
(Weinheim, Germany; Stavanger, Norway; Houston, Texas.) January 14, 2013.
Freudenberg Oil & Gas is pleased to announce that on January 11, 2013, 100% of the shares of Vector Technology Group, a major global supplier of high integrity sealing solutions for the oil and gas industry, were acquired by parent company Freudenberg Group, headquartered in Weinheim, Germany. The shares were acquired from the private equity firm HitecVision headquartered in Stavanger, Norway. The two groups reached an agreement in December, and the Norwegian anti-trust authority has since formally approved the ownership change.
“The acquisition of Vector is a further step towards strengthening Freudenberg's position in the oil and gas industry,” says Dr. Mohsen Sohi, Speaker of the Freudenberg Management Board.“Freudenberg intends to continue its growth in this field through a combined “buy-and-build” and an organic growth strategy. Vector possesses a high level of technical expertise, especially in the offshore segment. The company fits perfectly with Freudenberg, because of its culture, unique engineered product solutions, continuous innovation and numerous market firsts."
Vector provides proprietary, high integrity connector products with patented metal to metal seal technology for use in offshore oil and gas platforms, floating production storage and offloading vessels, subsea riser, swivel, flow-line and manifold applications and refineries and petrochemical plants. The products core features are its high integrity metal-to-metal sealing and design which minimize weight and space, which directly affect total project cost, installation time and maintenance cost. The products are currently manufactured to 15,000 PSI working pressure and have a proven track record in harsh environment applications where fatigue, high bending and stress loads are primary considerations.
“Vector gives us the opportunity to expand our expertise in developing applications-focused engineered products,” says Richard T. Schmidt, President and CEO of Freudenberg Oil & Gas. “That makes us an even more efficient strategic partner for our customers in the upstream segment of the oil and gas industry.”
Founded in 1978 in Norway as Steel Products Offshore and as Techlok Ltd in 1987 in the United Kingdom, the companies merged to form Vector in 2003. Vector has manufacturing centers in Malaysia, Norway, United Kingdom, and the United States. These manufacturing centers are complemented by technical sales offices in Australia and Brazil. These locations complement Freudenberg Oil & Gas' global presence in Canada, Norway, Singapore, United Arab Emirates, the UK and the US. Almost 50 R&D and design engineers in Europe and North America are developing innovative and customized solutions for major oil and gas end-users and leading Original Equipment Manufacturers (OEMs). In 2012, the company is forecasting sales of more than US$100 million (almost €80 million).
“For Vector, becoming an important part of Freudenberg Oil & Gas is a major step in our evolution. Our innovative products will compliment Freudenberg's core competencies of materials science, process control and manufacturing excellence,” says Catherine Bjaarstad, CEO of Vector Technology Group. Bjaarstad will continue to lead the business once it becomes part of Freudenberg Oil & Gas.
The acquisition of Vector brings Freudenberg Oil & Gas closer to its goal of being the global leader in sealing technology for the upstream oil and gas market. Freudenberg Oil & Gas was formed in 2011 and today consists of seven acquired companies, all with sealing expertise in the oil and gas industry.