The Carlyle Group has agreed to buy UK-based testing and inspection company Velosi for roughly 87.8 million pounds ($138.9), Reuters reported. The deal, at 165 pence per share, represents a 61% premium over Wednesday’s closing price.
(Reuters) – Private equity firm Carlyle Group’s [CYL.UL] unit agreed to buy British testing and inspection company Velosi (VELO.L) for about 87.8 million pounds ($138.9 million), providing Velosi with enough financial support to enter new markets.
Shareholders of Velosi, a provider of quality control services to oil and gas firms, will get 165 pence per share in cash, a 61 percent premium to Velosi’s Wednesday close.
Carlyle, which may file papers to go public late next year, said it has the recommendation of about 53.2 percent of Velosi shareholders.
Carlyle’s Applus Technologies, which services energy industry clients in Europe and South America, might restructure Velosi and make it a unit after the deal closes.
Velosi, which operates in 39 countries, has clients such as BP (BP.L) (BP.N), Exxon Mobil (XOM.N) and Royal Dutch Shell (RDSa.L).
In the first half to Sept. 21, Velosi’s pretax profit fell slightly and it said it expected to get fewer high-margin inspection contracts. [ID:nSGE68K0AS]
Velosi shares, which have lost 16 percent of their value since the company posted first-half results, were up 57.4 percent at 161 pence at 0855 GMT on Thursday on the London Stock Exchange.
($1=.6321 Pound) (Reporting by Aditi Samajpati in Bangalore; Editing by Anne Pallivathuckal)