Subsea 7 has taken over Seaway Heavy Lifting following the purchase of 50% stake from K&S Baltic Offshore (Cyprus) Ltd., in a move that will increase its position in the renewables, heavy lifting and decommissioning markets.
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Image of the Stanislav Yudin, from Seaway Heavy Lifting. |
Subsea 7 signed and completed the US$279 million deal last week (10 March), making the offshore contractor, which operates two world-class heavy lift vessels, and its subsidiaries wholly-owned by Subsea 7.
An additional consideration of up to $40 million will be paid in 2021 on the condition that certain performance targets are met, the company said.
Prior to the takeover, Seaway Heavy Lifting was a joint venture company in which Subsea 7 held a 50% interest.
Seaway saw about a 19% dip in its revenue, going from $491 million in 2015, to $398 million in 2016.
“Our investment to acquire the remaining shares in Seaway Heavy Lifting, such that it becomes a wholly-owned subsidiary of our Group, is aligned with our strategy to grow and strengthen our business for the long-term,” Jean Cahuzac, Subsea 7 CEO said. “Consolidating Seaway Heavy Lifting into the Group increases our participation in renewables, heavy lifting and decommissioning services. These are areas where we expect market activity to increase and see potential to grow our market share.”
As at 31 December 2016 Seaway Heavy Lifting had $284 million of order backlog, excluding $1.1 billion relating to the Beatrice offshore wind farm project. The company employs 550 people and is headquartered in the Netherlands.
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