Merced Capital has completed the acquisition of Dubai-based offshore construction vessel owner and service provider Telford Offshore.
Telford Offshore, which offers offshore consturction and pipelaying services, said that as part of the transaction, Merced Capital has provided an injection of new capital in the company to support its next chapter of growth and improve its balance sheet, reducing its net debt position to zero post-transaction.
"With the backing of a supportive financial sponsor and substantially enhanced liquidity, Telford Offshore will be well-positioned to benefit from the recovery underway in the global energy industry and the associated robust demand for offshore services," Telford Offshore said.
Telford Offshore also said that Robert Duncan has been appointed as new Chief Executive Officer of the company, succeeding Fraser Moore.
"A respected executive with over two decades of experience leading global teams in the offshore energy and marine industries, Mr. Duncan most recently served as Founder and Chief Executive Officer of Capital Strategies International and prior to that was Chief Executive Officer of Seafox International," Telford Offshore said.
Joe McElroy, Partner at Merced Capital, said “We have been Telford Offshore’s primary financial sponsor since the inception of the company and look forward to continuing to support the team in this new chapter of its corporate history. We thank Fraser for the strong foundation he built at Telford and his support during this transition. Looking ahead, we are confident that Robert is the ideal leader to develop and strengthen the Company’s platform and to capitalize on growth opportunities in the offshore services market.”
“I am honored to join Telford Offshore at this pivotal time for the Company and at an important moment in our industry, which is in the early phases of what we expect to be a strong recovery after several challenging years,” said Robert Duncan, Chief Executive Officer of Telford Offshore. “Under its new ownership and with a streamlined balance sheet, Telford is poised to further establish ourselves as an industry leader.”
Telford Offshore said its ongoing commitments to clients, vendors and employees would not be affected by the acquisition and and current operations will continue in normal course.
According to Telford Offshore, the company currently has five assets, which are all currently under contract to work with "strong counterparties, including national oil companies (NOCs) and international oil companies (IOCs)."
The assets/vessels in question are:
– Telford 25 with an 800-ton crane, rigid pipelay capable, 1,500 m2 of deck space and 379 berths
– Telford 28 with a 270-ton crane, 1,500 m2 of deck space and 462 berths
– Telford 30 with a 270-ton crane, rigid pipelay capable, 300 m2 of deck space and 480 berths
– Telford 31 with a 400-ton crane, 1,300 m2 of deck space and 477 berths
– Telford 34 with an 800-ton crane, rigid pipelay system, 1,350 m2 of deck space and 339 berths