Oil and gas prompts Palfinger buyout

31 October 2012

Palfinger will take over Bergen Group Dreggen AS (Dreggen), a Norway-based manufacturer of marine and offshore cranes, in a bid to take further advantage of the expanding oil and gas market.

Headquartered in Bergen, Dreggen has 25 years of experience in the marine and offshore crane market. An independent division of the Bergen Group, the company specialises in custom cranes for the shipbuilding and oil and gas industries.

“Dreggen is well positioned and shares Palfinger’s high quality demands. The incorporation of this company into our group marks a milestone for our marine business,” said Herbert Ortner, Palfinger CEO. The company has a global sales and service network, including sales offices in Brazil and Singapore, and in 2011 it generated some €30 million in revenue.

"Excellent growth opportunities are expected in the marine sector and, in particular, the offshore sector," added a company spokesman, "Offshore fleets for drilling platforms and their supply as well as commercial fleets have recorded unrestricted growth in recent years and, in addition, high energy and oil prices have encouraged further investments in exploration and production.

The Dreggen cranes will expand the Palfinger product portfolio with jack-up rigs, FPSOs and drilling vessels. “The offshore sector requires cranes that have been adapted to the highly explosive environment. In future, these special requirements will be perfectly met by the new business unit Offshore Cranes,” said Karl Oberreiter, head of Palfinger Marine.

In the future, Dreggen will operate under the name Palfinger Dreggen. “With Dreggen we can now enter a new dimension that will not only bring about a great boost to growth but will also open up new opportunities and markets,” added Ortner.

The transaction is subject to customary closing conditions, including approval from the competition authorities in Norway, and is expected to be closed by the end of November.

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