OEG Energy Group, one of Scotland’s unsung unicorns, has been acquired by funds managed by New York asset management firm Apollo.

Apollo has taken a majority stake in the Aberdeen-based business from funds managed by the Power Opportunities strategy of Oaktree Capital Management, and other investors.

The deal, which implies a headline valuation of more than $1 billion (£770m), underscores the growing interest of investors in the energy market, particularly in offshore services. Oaktree and others will retain a minority equity interest in the company.

OEG, established in 1973, owns and operates one of the world’s largest fleets of cargo carrying units (CCUs), with 75,000+ units, enabling the safe transportation of essential cargo to and from offshore energy installations. It moved into its new headquarters at ABZ Business Park in Dyce last year.

The latest accounts for the period March to December 2023 showed revenues of $320.6 million and a pre-tax loss of $15 million.

John Heiton, CEO of OEG, said: “Since our company’s founding, we have worked hard to establish OEG as a global leader in delivering core services throughout the offshore energy value chain.

“As energy producers across Europe and around the globe continue to invest in energy transition, we are committed to expanding and enhancing our capabilities as a key partner.

“We look forward to working with Apollo as we enter this new and exciting chapter for our business and remain focused on supporting our customers with the same quality service they have come to expect.”

Wilson Handler, partner at Apollo, said: “John and team have built OEG into a global leader and trusted provider of offshore equipment and services, with an integrated business model that has scaled across cycles.

“We see a tremendous opportunity to invest in the company’s future growth as secular tailwinds drive demand for services enabling efficient energy production and renewable power.

“Bringing to bear the scale of Apollo’s integrated platform and deep expertise in energy services, we look forward to working with the talented team at OEG to unlock value for its various stakeholders and loyal customer base via organic and inorganic channels.”

Banco Santander SA acted as financial adviser and Vinson & Elkins served as legal counsel to the Apollo funds on the transaction.

Goldman Sachs International acted as financial adviser to Oaktree, while Gibson, Dunn & Crutcher (corporate) and Latham & Watkins (financing & antitrust) served as legal advisers.

White & Case served as legal counsel to OEG management.