WEINHEIM, Germany, Dec. 10, 2012 /PRNewswire/ -- The Freudenberg Group, headquartered in Weinheim, Germany, and the private equity firm HitecVision, headquartered in Stavanger, Norway, have signed a Share Purchase Agreement for 100 percent of the outstanding shares of Vector Technology Group, a major global supplier of high integrity sealing solutions for the oil and gas industry. Vector Technology Group, headquartered in Lysaker, Norway, is one of the leading designers and manufacturers of engineered, innovative sealing solutions and differentiated seal products for the upstream segment of the oil and gas market. "As part of our global expansion strategy, Freudenberg wants to strengthen its oil and gas business," says Dr. Mohsen Sohi, Speaker of the Freudenberg Board of Management. Vector Technology Group currently employs 280 associates world-wide and will generate sales of almost 80 million Euro in 2012. The acquisition is conditional upon approval by the Norwegian anti-trust authority.
"Freudenberg intends to continue its growth in this field through a combined buy-and-build and an organic growth strategy", says Dr. Mohsen Sohi. "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.
"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.
About the Freudenberg Group
The Freudenberg Group is a family-owned corporation offering its customers technically challenging product solutions and services. The Group develops and manufactures seals, vibration control components, filters, nonwovens, surface treatment products, release agents, specialty lubricants, and medical and mechatronic products. Freudenberg also develops software solutions and IT services for mid-size companies. Consumers can purchase Freudenberg household products under the brand names vileda®, O-Cedar®, Wettex®, Gala® and SWASH®. The Freudenberg Group employed over 37,000 associates in 58 countries and generated sales of more than €6 billion in 2011. For further information, please visit www.freudenberg.com
About Freudenberg Oil and Gas
Freudenberg Oil & Gas is a part of the Freudenberg Group and a global solutions provider of innovative seal solutions and differentiated seal products to the global oil and gas industry. The Business Group is focused on the exploration and production (upstream) segment. Today approximately 345 associates serve a wide range of customers including oil and gas producing companies, original equipment manufacturers (OEMs) and engineering and service companies that provide technologies, equipment and services for producing oil and gas from land based and offshore platforms throughout the world. The Business Group has locations in Canada, Norway, Singapore, the UK, the United Arab Emirates and the US. In 2011, Freudenberg Oil & Gas generated sales of more than €46 million. Please see www.freudenberg-og.com
About Vector Technology Group
Vector Technology Group is a major single source supplier of high integrity sealing solutions for the most demanding applications. Its products are for use in offshore oil and gas platforms, FPSOs, subsea, riser, swivel, flow-line and manifold applications, and refineries and petrochemical plants. The company employs 280 associates and has locations in Australia, Brazil, Malaysia, Norway, United Kingdom and the United States. For further information, please visit www.vectortg.com
SOURCE Freudenberg Group