DeepFlex, the world’s only manufacturer of premium unbonded composite flexible pipe used in challenging subsea oil and gas production environments, announced that it has entered into a significant funding agreement with funds co-managed by two of Brazil’s leading private equity firms, Mare Investimentos and Mantiq Investimentos.
Additional funding is also being provided by existing investors AEM Capital and Promon International of Brazil and Energy Ventures, Klaveness Marine, and Mobelmagasinet Tvedt of Norway.
The combined equity investment from both new and existing investors will support DeepFlex´s strategic development plan to establish a manufacturing center in Brazil, where the Company recently opened an office staffed by experienced business development and technical personnel. The Brazilian market represents over 65% of the worldwide demand for unbonded flexible pipe used in offshore production and this expansion plan will allow DeepFlex to serve this key market as well as satisfy local content objectives. The use of proceeds will also fund an expansion of the Company’s U.S. manufacturing capability to support existing backlog and an expanding order book.
Mike Kearney , President and CEO of DeepFlex, said: “As DeepFlex continues to build momentum in the flexible pipe marketplace, we are pleased to secure the funding necessary to expand the Company’s global market reach, in particular, serving the world’s single largest market. The capital transaction we are announcing today will transform DeepFlex into a company with substantial flexible pipe manufacturing capacity and engineering capabilities to serve all major offshore production markets. We appreciate the commitment of our employees, the ongoing support of our current investors and welcome Mare and Mantiq to the DeepFlex team.”
[mappress]
Press Release, April 10, 2013