Global Marine Group (GMG) has announced that Global Marine Systems Limited (GMSL) has entered into an agreement with Fugro under which GMG will acquire Fugro’s trenching and cable lay services business.
The purchase consideration, valued at approximately US$73M, consists of the issuance to a subsidiary of Fugro of a 23.6% equity interest in Global Marine Holdings LLC (the parent company of GMSL), valued at US$65M, and an obligation of GMSL to pay Fugro US$7.5M within one year pursuant to a secured vendor.
The acquisition of Fugro’s trenching and cable lay services business involves the transfer to GMG of 23 Fugro employees located in Aberdeen, one vessel (Symphony), two Q1400 trenchers, and two work-class remotely operated vehicles. Built in 2011, Symphony, a multi-purpose vessel with an extensive 1,400 m˛ deck space, will join GMG’s cable installation and maintenance fleet. In addition, as part of this transaction, Fugro will become the preferred provider of marine site characterisation and asset integrity services to GMG.
Since the founding of Fugro’s trenching and cable lay services business in 2012, the company has established a strong presence in the renewables market, working on offshore windfarms including the Lincs, Humber Gateway, Gwynt y Môr and Rampion projects. The business has also conducted multiple operations in oil and gas for major oil companies such as Shell and BP.
“This acquisition is another step in our strategic plan, adding extensive capabilities of the Fugro trenching and cable lay team to the Global Marine Group and further equipping us with proven assets to support our growth plans,” said the chief executive of Global Marine Group, Ian Douglas. “I am delighted that Fugro identified us as the right partner to advance their trenching and cable lay business and I am looking forward to welcoming the Aberdeen-based trenching team to our corporate family. We are committed to our vision of engineering a clean and connected future and we will continue to build, align and adapt our business in order to meet the evolving needs of our customers.”
“A key objective of Fugro’s strategy is to seek a partnership or divest our construction and installation-related marine activities,” said the company’s chief executive, Paul van Riel.
The transaction is subject to customary closing conditions, and is expected to close in Q4 2017.