Subsea contractor Subsea 7 has made an offer of nearly US$320 million to take over Dutch offshore firm Seaway Heavy Lifting by acquiring the 50% stake in the firm it currently doesn't own.
Seaway Heavy Lifting is a specialist offshore contractor and operates two heavy lift vessels and employs about 550 people. The firm is currently owned 50/50 by Subsea 7 and K&S Baltic Offshore.
Jean Cahuzac, CEO, said: "Subsea 7's strong market position in offshore energy services is complemented by Seaway Heavy Lifting's expertise in three areas of offshore activity: renewables, heavy lifting operations and decommissioning of oil and gas assets.
"We believe that this acquisition will allow us to strengthen Subsea 7's position in businesses where we expect increased activity and opportunities for long term growth.
Subsea 7 is offering an initial consideration of $279 million on completion and deferred consideration of up to $40 million to be paid by the end of Q1 2021 on condition that certain performance targets are met. The considerations will be funded from Subsea 7's existing cash resources.
As at 31 December 2015, Seaway Heavy Lifting had net assets of $413 million, including net debt of $4 million.
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