Subsea 7 has signed an agreement to acquire the entire share capital of Siem Offshore Contractors (SOC), as well as cable lay vessel Siem Aimery and support vessel Siem Moxie, subject to competition clearance in Germany.
The initial consideration is agreed to be EUR 140 million, split between 90 million for the vessels and 50 million for the shares of SOC subject to usual adjustments for net cash and working capital.
In addition, Subsea 7 is entitled to contingent consideration based on the volume of work for SOC from 2019 to the end of 2024, which is estimated to amount to between EUR 25-40 million over the period.
The transaction is expected to be concluded in the first half of 2018.
“With this transaction the cable lay activities of SOC is combined with the renewables business of Subsea 7 where it strategically belongs and where it is likely to prosper and grow,” Siem Offshore Inc’s Chief Executive Officer, Bernt Omdal, said.
“The transaction will further strengthen the balance sheet of Siem Offshore and the Company will maintain a financial position stronger than most of its competitors. The Company will now focus fully on its vessel business.”