Subsea 7 acquired 50% stake in Seaway Heavy Lifting (SHL) from K&S Baltic Offshore (Cyprus) on 10 March. SHL was a joint venture company in which Subsea 7 held a 50% interest, hence the company is now a wholly-owned subsidiary of Subsea 7.
Subsea 7 announced that it had made an offer to acquire the remaining 50% interest in SHL in January.
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."
Subsea 7 paid cash consideration of USD 279 million on completion of the acquisition, with an additional consideration of up to USD 40 million to be paid in 2021 on the condition that certain performance targets are met.
Seaway Heavy Lifting's revenue in 2016 amounted to USD 398 million, with an EBITDA of USD 104 million.
Last year, SHL had USD 284 million of order backlog, excluding USD 1.1 billion relating to the Beatrice offshore wind farm project, which SHL secured together with Subsea 7. The companies are currently preparing for offshore works at the Beatrice site, due to start next month.
At the end of November 2016, SHL was signed up as an EPCI contractor for wind turbine foundations for the Trianel Windpark Borkum II offshore wind farm in Germany.
Seaway Heavy Lifting operates two heavy lifting vessels – Stanislav Yudin and Oleg Strashnov – and is active in three specialist segments of the offshore energy market: the installation of offshore wind turbine foundations, heavy lifting operations for oil and gas structures, and decommissioning.