Hogan Lovells has advised long-time client Promon International, a Brazilian engineering company, in negotiating and documenting a follow-on equity investment in US piping company DeepFlex to fund a manufacturing centre in Brazil.
DeepFlex is a manufacturer of premium unbounded composite flexible pipe used in challenging subsea oil and gas production environments.
Promon is an existing investor in DeepFlex, along with AEM Capital of Brazil and Energy Ventures, Klaveness Marine and Mobelmagasinet Tvedt of Norway. The majority of the new financing was provided by funds co-managed by two Brazilian private-equity firms, Mare Investimentos and Mantiq Investimentos.
The Brazilian market currently represents more than 65 per cent of the worldwide demand for unbounded flexible pipe used in offshore oil and gas production. According to DeepFlex, the financing will be used to develop manufacturing facilities in Brazil and to expand the company’s manufacturing capability in the US.
Washington DC corporate partner Richard Parrino represented Promon in the transaction.