Singapore's Sembcorp Marine Acquires Norway's LMG Marin for $20M
Singapore’s Sembcorp Marine Ltd. announced Friday that its wholly-owned subsidiary, Sembcorp Marine Integrated Yard Pte Ltd. (SMIY) has signed an agreement with shareholders of Norway’s naval architecture and ship design and engineering firm LMG Marin AS to acquire a 100 percent stake in the latter for $20 million.
LMG, a Bergen-based company with offices in Poland and France, has an extensive design and engineering portfolio covering floating structures, platforms and a wide variety of ship types – including drillships, floating production, storage and offloading vessels (FPSO), floating storage and offloading vessels (FSO), offshore support vessels (OSV), liquefied natural gas (LNG) carriers, LNG-powered ships, car ferries and cruise ships.
Sembcorp Marine had adopted several LMG-originated key designs for its projects, including the next-generation Espadon drillship design; the FSO design used in the ongoing construction of the firm’s newbuild FSO for deployment in the UK North Sea and the Gravifloat modular LNG and LPG platform solutions – which are a cost-competitive alternative to FSRU, FLNG and land-based terminals.
The Singapore firm will pay for the acquisition in cash, using internally generated funds. The acquisition will provide Sembcorp Marine a cache of design patents and expertise in naval architectural design, engineering and technology development.
"Through the strategic acquisition of LMG, Sembcorp Marine further strengthens its intellectual property and knowledge to execute leading-edge design and engineering solutions for the global offshore and marine sectors," Sembcorp Marine President and CEO Wong Weng Sun said in the press release.
"This in turn supports our ongoing efforts to move up the value chain so that we can compete better and do more for our customers and partners."
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