Odfjell Technology, a UK-headquartered spin-off of Odfjell Drilling, has signed agreements to buy a majority interest in two businesses active in lightweight intervention and plug and abandonment (P&A).
On completion, Odfjell Technology will take 70% of Kaseum Holdings Limited and Razor Oiltools Limited, giving it operational control and allowing full financial consolidation. The two companies will continue as separate legal entities within the Odfjell Technology group, while founders and key management remain in place.
Kaseum Holdings Limited develops patented, non-explosive wireline intervention tools, supported by a modular technology platform and recurring consumable revenues. Razor Oiltools Limited is an intervention and P&A service specialist. The remaining 30% is structured for later acquisition through a mechanism that includes a call option for Odfjell Technology and a corresponding seller put option, enabling a route to full ownership within three years.
Odfjell Technology said the transaction is intended to reinforce its position in high-margin, technology-led services and support the group’s longer-term strategy. The company added that rising P&A and intervention activity is being driven by ageing fields and a shift toward wireline-deployed, lightweight solutions, with the two businesses together bringing proprietary technology, proven service capability and immediate scale.
The deal implies a total enterprise value of £38.5 million (around €45 million) for 100% of Kaseum Holdings Limited and Razor Oiltools Limited combined. Cash consideration payable at closing is approximately £27 million, reflecting the initial 70% stake. The final 30% will be priced using a pre-agreed earnings-based formula that applies fixed multiples to results at the time of exercise, with adjustments for net cash and working capital.
Odfjell Technology will fund the acquisition using existing facilities and a bond tap. Subject to customary conditions, completion is expected in the first half of March.
