Arcapita Sells Roxar

Arcapita, a Bahrain-based investment firm, has sold Roxar, a Norwegian oil and gas metering business, to CorrOcean for approximately US$370m.

Trondheim-based CorrOcean, a measurement and software specialist, said that it will merge its operations with Roxar, creating one of Norway's leading providers of reservoir performance enhancement technologies to the upstream oil and gas industry.

The combined entity will trade under the brand name Roxar, although CorrOcean will maintain its listing on the Oslo Bors.

The sale has provided a close to twofold return for Arcapita, which bought Roxar, its first buyout in the Nordic region, in a US$200m transaction in March 2006, with senior, mezzanine and working capital facilities provided by Royal Bank of Scotland and Barclays Bank

Arcapita made the 2006 purchase from US private equity firm Lime Rock Partners and Norwegian shipping conglomerate Smedvig, which had bought Roxar for an undisclosed sum in February 2003.

Roxar is Arcapita's third transaction in Europe in 2007, following the April recapitalisation of Vogica, a French maker and retailer of kitchens and bathrooms bought in 2004; and the recapitalisation of Paroc, a Finnish insulation maker bought from BA Capital Partners for US$779m last June, due to be completed later this month.