Apollo Funds to Acquire OEG, a Leading Provider of Core Services to the Offshore Energy Industry
Rhea-AI Summary
Apollo (NYSE: APO) has announced its funds will acquire a majority stake in OEG Energy Group, a leading offshore energy solutions provider, in a deal valuing the company at over $1 billion. Oaktree Capital Management will retain a minority stake.
OEG operates one of the world's largest fleets of cargo carrying units (CCUs), with over 75,000 units serving offshore energy installations. The company provides services to both oil & gas and wind sectors, with a dedicated Renewables segment focusing on offshore wind technical solutions.
The transaction is expected to close in Q2 2025, subject to regulatory approvals. Apollo's funds have committed approximately $58 billion to climate and energy transition-related investments over the past five years.
Positive
- Major acquisition valued at over $1 billion expands Apollo's energy portfolio
- Access to OEG's market-leading position with 75,000+ cargo carrying units
- Strategic expansion into both traditional O&G and renewable energy sectors
- Retention of existing management team ensures operational continuity
Negative
- Significant capital outlay required for acquisition
- Subject to regulatory approval risks
- Integration challenges between Apollo and OEG operations
Insights
Apollo's acquisition of a majority stake in OEG Energy Group at a $1+ billion valuation represents a strategic expansion into the offshore energy services sector with exposure to both traditional and renewable markets. The deal structure—with Oaktree maintaining a minority position—suggests shared confidence in OEG's growth potential while distributing investment risk.
OEG brings substantial operational assets to Apollo's portfolio, including 75,000+ cargo carrying units that provide mission-critical logistics services to offshore energy installations. This infrastructure plays an essential role in both oil & gas operations and offshore wind development, positioning Apollo to benefit regardless of the pace of energy transition.
This acquisition aligns with Apollo's broader investment thesis, having deployed $58 billion in climate and energy transition investments over five years. For a firm with Apollo's scale (
The transaction's pending regulatory approval introduces standard execution risk, with closing anticipated in Q2 2025. Without disclosure of OEG's financial performance metrics, the valuation's attractiveness remains difficult to assess, though the continued involvement of the selling investor suggests the pricing wasn't distressed.
OEG's dual positioning across traditional and renewable energy markets makes it a particularly valuable asset in today's evolving energy landscape. With over 50 years of operational history, OEG has demonstrated capacity to adapt through multiple energy market cycles while maintaining its core logistics capabilities.
The company's offshore cargo transport infrastructure serves as a critical component in both oil & gas operations and offshore wind development. This positions Apollo to capture value from ongoing fossil fuel production while simultaneously participating in renewable energy growth—essentially a hedge against uncertain transition timelines.
OEG's renewables segment provides integrated technical solutions for the offshore wind sector, which requires specialized equipment and expertise significantly different from traditional energy infrastructure. This capability eliminates a key barrier to entry and provides Apollo immediate scale in a technically complex market.
The "secular tailwinds" referenced likely include increased capital expenditure in both sectors—continued investment in efficient oil & gas production to meet current energy demands coupled with accelerating investment in offshore wind capacity. Apollo's acquisition timing suggests confidence in sustained demand for OEG's services across both market segments as energy companies balance current production needs with long-term transition strategies.
LONDON and NEW YORK, March 19, 2025 (GLOBE NEWSWIRE) -- Apollo (NYSE: APO) today announced that funds managed by Apollo affiliates (the “Apollo funds”) have agreed to acquire a majority stake in OEG Energy Group (“OEG” or the “Company”), a leading offshore energy solutions business, from funds managed by the Power Opportunities strategy of Oaktree Capital Management, LP (“Oaktree”) and other investors. The transaction implies a headline valuation of more than
OEG is a scaled provider of core services across the offshore energy ecosystem, delivering development and operations solutions to oil & gas (O&G) and wind end markets for more than 50 years. The Company 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. OEG’s Renewables segment is a global, integrated provider of key technical solutions and services to the offshore wind sector.
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.”
Francesco Giuliani, Managing Director and Assistant Portfolio Manager in Oaktree’s Power Opportunities strategy, said: “We are proud of our partnership with the management team at OEG and the success achieved during Oaktree’s period of ownership. During that time, increased focus on the energy transition and global supply dynamics has made investment for core energy infrastructure even more important. We continue to have strong conviction in OEG’s growth trajectory and are thrilled to maintain a minority interest alongside Apollo funds.”
Over the past five years, Apollo-managed funds and affiliates have committed, deployed, or arranged approximately
The transaction is subject to satisfaction of certain closing conditions, including regulatory approvals, and is expected to close in Q2 2025.
Banco Santander SA acted as financial advisor and Vinson & Elkins LLP served as legal counsel to the Apollo funds on the transaction.
Goldman Sachs International acted as financial adviser to Oaktree, while Gibson, Dunn & Crutcher LLP (corporate) and Latham & Watkins (financing & antitrust) served as legal advisers.
White & Case LLP served as legal counsel to OEG management.
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i As of December 31, 2024. The firmwide targets (the “Targets”) to deploy, commit, or arrange capital commensurate with Apollo’s proprietary Climate and Transition Investment Framework (the "CTIF"), are (1)
About Apollo
Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade credit to private equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of December 31, 2024, Apollo had approximately
About OEG Energy Group
OEG is a leading offshore energy solutions business providing infrastructure assets, technologies and services to the global energy industry. From the company’s beginning in 1973, OEG has evolved significantly, growing both organically and through strategic acquisitions, to become a pivotal link in the global energy supply chain.
OEG delivers specialized and complementary solutions for above-water, on-water and below-water applications across the full energy lifecycle. From the provision of offshore logistics equipment and bespoke solutions, through to the delivery of integrated services for larger project work scopes, OEG plays an important role in supporting the production of the world’s energy needs whether that be electricity, gas or oil.
Headquartered in Aberdeen, UK, OEG has over 1,300 employees and operates in more than 65 countries.
About Oaktree
Oaktree is a leader among global investment managers specializing in alternative investments, with
Apollo Contacts
Noah Gunn
Global Head of Investor Relations
Apollo Global Management, Inc.
(212) 822-0540
IR@apollo.com
Joanna Rose
Global Head of Corporate Communications
Apollo Global Management, Inc.
(212) 822-0491
Communications@apollo.com
Oaktree Press Contacts
FGS Global
Rory King / Hannah Ratcliff
Rory.King@fgsglobal.com / Hannah.Ratcliff@fgsglobal.com
FAQ
What is the valuation of OEG Energy Group in Apollo's acquisition deal?
How many cargo carrying units (CCUs) does OEG operate in its fleet?
When is Apollo's (APO) acquisition of OEG expected to close?
How much has Apollo invested in climate and energy transition projects?
Will Oaktree Capital maintain any ownership in OEG after Apollo's acquisition?
