Company announcement 2/2021
PRESS RELEASE April 14, 2021
Welltec’s founder and CEO retires and passes the reins to the COO
Founder and CEO of Welltec, Jørgen Hallundbæk, is retiring from the management team. He has sold a portion of his shares but remains the largest sole shareholder of the global technology company. Welltec’s COO for the last 10 years, Peter Hansen, is appointed new CEO.
Welltec was founded in 1994 and is today a global leader in oil & gas well robotic intervention and maintenance as well as in metal expandable isolation & integrity packers. Within these two categories, Welltec has global market shares of 55% and 40% respectively with both technology portfolios having a significant green environmental effect for their users. In the last 3 years, the company has also entered the geothermal and carbon capture & storage markets.
In recent years, Welltec has made gradual changes to its organization and today’s change in management completes this journey. Welltec's founder and CEO, Jørgen Hallundbæk, is retiring from the management team and the current COO, Peter Hansen, is assuming the position as CEO. Jørgen Hallundbæk remains the largest shareholder but has sold some of his shares to the two other large shareholders, the European investment companies, 7-Industries and Exor.
“Welltec was far ahead of its time when Jørgen Hallundbæk founded the company, and he has built a really strong global technology business over the past 27 years. Our current COO, Peter Hansen, has been a part of Welltec's management team for the last 10 years, and I am confident that in his new role he will continue to strengthen and expand Welltec’s global leadership positions” says Niels de Coninck-Smith, Chairman of the Board of Directors at Welltec.
Today, Welltec is a global company with approximately 800 employees across 38 offices and operating bases in 22 countries. Welltec revenues have grown rapidly since 2017 reaching $257m in 2019 with an EBITDA of $101m (39%) with healthy operating cash flows. As previously communicated, Welltec expects to announce a revenue decline for 2020 of less than 15% in what was a very challenging year for the entire industry, where the company managed to maintain operating earning margins close to 40%, which places the company among the best in the industry. Moving forward and to ensure this continued level of performance, Welltec, together with the shareholders, will further optimize the capital structure of the company.
“Together with our global teams, I look forward to continuing to contribute to the development of Welltec. We are global leaders in our service and products categories and are determined to strengthen our positions further. We have expanded our business potential by investing in geothermal and carbon capture and storage technology development. Combined with our core services and products, we believe that this creates a solid platform for the future,” says Peter Hansen.
Welltec has already established a multi-year collaboration with the US Department of Energy developing technologies for geothermal wells. The company also expects to be able to draw on its extensive experience with solutions for oil and gas wells in connection with carbon capture and storage. Both business areas are expected to grow significantly in the coming years.
“It is with great pride and appreciation that I now hand over the reins to the new management team but remain the largest sole shareholder of Welltec. As founder of a company, it is always difficult to find the right moment to step down, but I am confident that this is it, since we now have the right setup. We have come through the most challenging year in decades in the industry and we are facing new possibilities going forward,” says Jørgen Hallundbæk, founder of Welltec.
For further information contact:
Anne Vium, Radius CPH
Telefon: +45 27 59 14 62
Welltec is a global technology company that develops and provides efficient hi-tech solutions for the energy industry. The company was founded in 1994 by Jørgen Hallundbæk and grew rapidly by supplying innovative robotic technology to the oil and gas industry. In 2010, Welltec started technology development of a new business segment: metal expandable packers. Commercialization started in 2014 and Welltec have also become a global leader within this category.
Welltec’s cutting-edge products and services are designed to optimize well performance and well integrity in all environments. Through advanced engineering and lightweight design, Welltec’s solutions have been helping clients to increase operational efficiency and reduce environmental emissions and carbon footprints in a safe and sustainable way for more than 25 years.
In Denmark, Welltec has two technology and manufacturing centers in Allerød and Esbjerg, which respectively employ 177 and 47 employees.
Main shareholders are Jørgen Hallundbæk, 7-Industries and Exor.
Exor is one of Europe’s largest diversified holding companies controlled by the Agnelli family. For over a century, Exor has made successful investments and built great companies worldwide with a culture that combines entrepreneurial spirit and financial discipline. With a Net Asset Value of around $29 billion, its portfolio is principally made up of companies in which Exor is a leading shareholder: Stellantis, Ferrari, CNH Industrial, PartnerRe, Juventus FC, The Economist, GEDI Gruppo Editoriale and Shang Xia.
7-Industries Ltd. is a Single Family Office, owned and chaired by Mrs. Ruthi Wertheimer, founded in 2007. It invests in leading mid-size industrial & life science companies, owned by families and entrepreneurs, and seeks long term minority partnerships, globally. The family office of Mrs. Wertheimer was established following Warren Buffett’s Berkshire Hathaway purchase in 2006 of the IMC Group, the global leading precision metal cutting tools company, founded by Mrs. Wertheimer's parents. It's partnership solution is tailored for families and entrepreneurs who wish to ensure their continued growth while maintaining their independent character and culture. Over time, and with a clear focus, 7-Industries has accumulated rich industrial insight, experience and network, and brings first-hand insight into family business practices and life-cycles.