US-based offshore support vessel (OSV) provider Seacor Marine has decided to sell its North Sea emergency response and rescue vessel business to North Star in a move to cut costs and generate cash to support its core business.
Under the terms agreed, North Star will pay approximately US$25.1 million, said the provider of marine and support transportation services to offshore.
Based on revenue targets in 2020 and 2021, SEACOR Marine could receive an additional consideration of up to US$5.2. The sale will close in December. SEACOR Marine has 19 ERRVs in its standby rescue fleet.
John Gellert, SEACOR Marine’s Chief Executive Officer, said, “I am pleased to announce this important transaction for the company. This continues our strategy of reducing costs, optimizing regional footprint, and focusing our resources on core assets, regions and services with the highest potential for improved margins. The proceeds from the transaction will help us realize our goal of achieving profitability independent of a full market recovery in oil and gas services."
“We entered the ERRV Business in 2001 and it has been a positive contributor to our fleet mix and performance ever since. I thank all the employees working in the ERRV Business for their dedication and commitment to safety all these years and express confidence in their ability to build a class-leading ERRV business with North Star,” he added.
North Star Shipping already has a strong presence in the North Sea, with a fleet of 31 emergency response and rescue vessels (ERRVs) supported by about 70 fast rescue craft and 35 daughter craft.