Investcorp buys stake at oil and gas services provider Hydrasun

Investcorp, the Bahrain-based investment company, bought a controlling stake in oil and gas services provider Hydrasun in a deal valued at as much as US$300 million.

Investcorp, the Bahrain-based investment company with US$11.5 billion of assets under management, bought a controlling stake in oil and gas services provider Hydrasun in a deal valued at as much as $300 million.

Investcorp acquired the stake from Equistone Partners Europe for between $150m and $300m, Mohammed Al Shroogi, the company's president for Gulf business, said. Aberdeen, Scotland-based Hydrasun provides hydraulic equipment and fluid connectors for the offshore oil and gas industry.

Investcorp, with investments in companies such as Armacell and Georg Jensen, is making the acquisition through its Gulf Opportunity Fund. Investcorp chief executive Nemir Kirdar said last month the company had a "record deal flow for acquisitions as well as exits" in the six months ended December 31 and last year completed the sale of FleetPride to TPG for more than $1bn.

"Over the past 12 months Investcorp has done $1.5bn of deals in the US, Europe and Middle East and North Africa," Mr Al Shroogi said. "We're now discussing whether to launch another fund or to do more deal-by-deal investments."

Investcorp last month sold CCC Information Services to private equity firm Leonard Green & Partners, while acquiring a majority stake in FishNet Security from Lake Capital. The company's profit for the six months ended December 31 climbed to $39.2m from $5.2m a year earlier.

* Bloomberg News