Arle Said to Work With Greenhill, Rabobank on Sale of Stork

Arle Capital Partners is working with Greenhill & Co. and Rabobank Group on the potential sale of oilfield-services provider Stork, people with knowledge of the matter said.

The company, known as Stork Technical Services, may fetch about 500 million euros ($564 million), the people said, asking not to be identified as the details aren’t public. Other private-equity firms, including CVC Capital Partners, Clayton Dubilier & Rice and EQT Partners AB, may be interested in bidding for the business, the people said.

A sale would initiate an exit of part of a business that investment firm Candover took private in 2008 in a deal valued at 1.6 billion euros. Candover agreed to sell its buyout unit to Arle in 2010.

A slump in crude prices is driving consolidation among companies that sell services to the industry as oil producers cut budgets. Halliburton Co., the second-biggest oilfield-services provider, agreed to buy No. 3 Baker Hughes Inc. for about $35 billion in November last year.

Stork, which provides services including testing, maintaining and repairing equipment for oil and gas companies, posted revenue of 352 million euros for the first quarter, up from 315 million euros in the same period last year. The company said last month it continued to face a challenging market in power services and the U.K., and announced a restructuring plan for its business in the country.

Stork was split from Fokker Technologies, which makes components for the aerospace industry, in 2012. Fokker is also owned by Arle but run as a separate entity.

Spokesmen for Arle, CVC, EQT and Rabobank declined to comment. Representatives for CD&R, Greenhill and Stork didn’t respond to requests for comment.

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