Hydralift Acquires AmClyde

Hydralift ASA has entered into a contract to acquire substantially all of the assets and activities of AmClyde Engineered Products Company, Inc. from the bankruptcy estate of Friede Goldman Halter, Inc. for an estimated net cash consideration of approximately NOK 300 million.

The acquisition is subject to approval by the US Bankruptcy Court, a hearing period and a possible auction proceeding according to US Bankruptcy Law. Barring any unforeseen issues, Hydralift expects the closing to take place in April 2002.

Dating back nearly 120 years, AmClyde is a leading international supplier of heavy lift cranes, mooring systems, pipelay system, deck machinery and specialty equipment, including the pipelay and cable lay operation known as AmClyde-Norson Engineering in Glasgow, Scotland. The company encompasses several strong brand names including AmClyde, Unit Mariner, Lucker, Fritz Culver, McElroy Marine, and AmClyde-Norson Engineering. All of its products are covered by patents or highly proprietary designs: the company owns 52 patents in 15 countries.

AmClyde has high market share in its key product lines: 77% of the world fleet of super marine cranes, 50% of the world’s deepwater combination chain-wire rope mooring systems installed during the last 5 years, 70% of the U.S. fleet of shipyard cranes and some 30% of the larger crane market in the Gulf of Mexico. The company has built and installed over 8.000 cranes and winches globally, providing a very strong base for its aftermarket parts and service business.

AmClyde's offerings for the offshore oil industry have a very strong strategic fit with those of BLM in France, which Hydralift acquired in 2001 from Friede Goldman Halter, as well as with Hydralift's own products in these markets.

AmClyde has around 150 employees in St. Paul and an additional 150 employees at its fabrication facilities in Louisiana.

Heavily influenced by the bankruptcy of its parent company, AmClyde's turnover in 2001 reached around NOK 600 million, while normal levels previously have been in the NOK 900-1,000 million range. The company has been continuously profitable, including 2001, and the acquisition is expected to be neutral to accretive to Hydralift in 2002, and to contribute significantly to Hydralift's result beginning in 2003.