Freudenberg Oil & Gas expands its position and expertise in the upstream segment of the oil and gas market with innovator in offshore sealing solutions.
Freudenberg Oil & Gas announced that on January 11, 2013, 100% of the shares of Vector Technology Group, a major global supplier of high integrity sealing solutions for the oil and gas industry, were acquired by parent company Freudenberg Group, headquartered in Weinheim, Germany. The shares were acquired from the private equity firm HitecVision headquartered in Stavanger, Norway. The two groups reached an agreement in December, and the Norwegian anti-trust authority has since formally approved the ownership change, allowing the transaction to be completed.
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 generated sales of almost 80 million Euros in 2012.
Vector Technology Group is a strategic acquisition of Freudenberg & Company and is the eighth company acquired under the “buy and build” strategy for oil and gas business group. It is a further step for Freudenberg Oil & Gas to expand expertise in developing applications-focused engineered products for the upstream oil and gas market.
The Vector product portfolio includes the Techlok Clamp Type Connector, SPO Flange Type Connector, Optima Subsea Connector, and metal-to-metal sealing technology.
“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.”