Québec, Canada, February 18th, 2020 — Eddyfi/NDT announced today the acquisition of Halfwave, headquartered in Bergen, Norway. Halfwave is the owner of the proprietary Acoustic Resonance Technology (ART), an ultrasound-based technique which allows high-precision measurements in imperfect conditions and without the need for liquid couplant. The company is currently active worldwide in the field of Subsea inspection and Pipeline inline inspection (ILI). The company has over 70 employees and additional offices in Oslo, Norway, and Houston, USA.
Martin Theriault, CEO of Eddyfi/NDT, says: “We are first and foremost an NDT technology company. The uniqueness and proprietary nature of the ART technique was an opportunity we could not miss. This acquisition is very synergetic for our group, impacting all 3 of our business units. Eddyfi Technologies will benefit from leveraging a new modality to create a multitude of new applications. TSC Subsea will add a second, highly differentiated modality to its offering. NDT Global will officially enter the in-service gas pipeline segment and present a competitive alternative to EMAT insofar as SCC crack detection. All in all, the transaction reinforces Eddyfi/NDT’s positioning as a high-end, high-performance solutions provider agnostic to any particular modality.”
Halfwave Subsea will merge with TSC Subsea, and the two units will mutually benefit from larger scale and market access. Halfwave AS, the ILI entity, will kick off its integration with NDT Global at the PPIM Conference in Houston. The initial focus will be on creating rapid sales synergies. NDT Global’s operational know-how, experience and footprint will improve the robustness of ART inspection service. The integration process is expected to be finalized during the course of 2020. This will allow the Halfwave team to remain focused on continuing to develop the science for onshore metal thickness applications, as well as crack inspection.
Novacap alongside its co-investors and CDPQ, along with National Bank of Canada and Investissement Quebec, have provided their support for the transaction. “The team at Eddyfi/NDT is highly determined to succeed. What better way to accelerate their entry into the Advanced Integrated Inspection strategy than with a play in both ILI and Subsea,” said David Lewin, Senior Partner at Novacap (TMT). This transaction is the team’s 8th acquisition in less than 4 years. “In addition to successfully executing its ambitious growth plan, Eddyfi/NDT has demonstrated a strong ability to integrate companies into its portfolio, becoming today a world leader in its industry,” said Charles Emond, President and Chief Executive Officer of CDPQ.
Halfwave was acquired from its main shareholders – EV Private Equity, Shell Ventures, Chevron Technology Ventures and DNVGL – in addition to key employee shareholders. Halfwave´s Chairman and Senior Partner at EV Private Equity, Einar Gamman, observed: “It was very important for the shareholders to find a buyer that could continue perfecting the ART technique and accelerate its global adoption. Following a competitive process, we found there was no better entity than Eddyfi/NDT to deliver the most prosperous future for the ART offering. I want to thank the staff of Halfwave, who have, since our initial investment in 2012, developed and commercialized a set of disruptive asset integrity inspection techniques and as such I am proud that we are positively contributing to the important global targets of safer operations of, and reduced emissions from, the up & midstream hydrocarbon industry.”
CEO of Halfwave, Paul S Cooper, adds: “It has been a great journey growing and developing the ART NDT platform into unique market-leading pipeline and subsea inspection applications. The combination of a talented Halfwave team, forward-looking clients and unwavering support from our owners has provided an unstoppable recipe for success. Eddyfi/NDT’s impressive complementary technology portfolio, technology focus and global footprint provides the perfect vehicle for ART to realize its full potential in the market. We are very excited at becoming part of the Eddyfi/NDT team.”
Baird acted as an exclusive financial advisor to Eddyfi/NDT in the transaction. McCarthy Tétrault acted as lead legal advisor to Eddyfi/NDT.
Simmons Energy, a division of Piper Sandler, acted as an exclusive financial advisor to Halfwave and its shareholders in the transaction, and law firm Schjødt acted as the legal advisor to Halfwave.
Eddyfi/NDT is a fast-growing, innovative private Test & Measurement (T&M) technology group focused on Non-Destructive Testing (NDT). Through its 2 divisions, Advanced NDT Equipment and Advanced Integrated Inspections, it caters to asset owners, large engineering firms, and service companies globally in markets such as Aerospace, Energy, Mining, Power Generation, and Transportation. Eddyfi/NDT believes that advancing NDT science and technology via sensors, hardware, robotics and software makes the world safer, more productive and more environmentally secure. The company employs over 1,100 people throughout 22 offices worldwide and serves clients in more than 110 countries. www.eddyfi-ndt.com
Halfwave provides accurate and reliable inspection data that allows its customers to make informed choices in order to maintain the integrity of critical assets. Halfwave has developed innovative cost-effective inspection tools and services for the energy market. Key to Halfwave’s offering is its patented ultra-wideband acoustic inspection technology (ART), which offers penetration and measurement capabilities significantly exceeding those of existing inspection technologies. The company has established ART as a superior technology for pipeline & subsea inspection. Halfwave’s workshop and office headquarters are located in Bergen, Norway. The company also has an office in Oslo and a workshop in Houston, USA. www.halfwave.com
Founded in 1981, Novacap is a leading Canadian private equity firm with CA$3.6 billion of assets under management. Its distinct investment approach, based on deep operational expertise and an active partnership with entrepreneurs, has helped accelerate growth and create long-term value for its numerous portfolio companies. With an experienced management team and substantial financial resources, Novacap is well positioned to continue building world-class businesses. Backed by leading global institutional investors, Novacap’s deals typically include leveraged buyouts, management buyouts, add-on acquisitions, IPOs, and privatizations. Over the last 39 years, Novacap has invested in more than 90 companies and completed more than 130 add-on acquisitions. The company has offices in Toronto, Ontario, and Brossard, Quebec. For more information, please visit www.novacap.ca.
About Caisse de dépôt et placement du Québec (CDPQ)
Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at June 30, 2019, it held CAD326.7 billion in net assets. As one of Canada’s leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure, real estate and private debt. www.cdpq.com
About EV Private Equity
EV Private Equity is an independent growth equity firm investing in technology enabled industrial businesses offering impact in the form of lower costs, increased productivity, reduced risk and lower carbon footprint. Its team of investment experts deploy proven practices across a global network to grow world-class companies and deliver competitive returns for its investors. With five funds and assets under management of more than $1 billion, EV Private Equity has a strong active portfolio of more than 20 highly differentiated companies. It is proud of the close relationships it cultivates with its portfolio companies – working in partnership with them to achieve shared goals is the key to its success in growing companies to their full potential. www.evpe.com
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Yann Langlais Plante
EV Private Equity