Subsea 7 to Acquire Siem Offshore Contractors
Subsea 7 S.A. announced Thursday that it has signed an agreement to acquire Siem Offshore Contractors GmbH.
The deal, which is subject to competition clearance in Germany, will include the entire issued share capital of Siem, the inter-array cable lay vessel Siem Aimery and the support vessel Siem Moxie.
The initial consideration of the transaction is $170 million (EUR 140 million), although this is subject to adjustments for working capital and net cash in Siem and a deferred contingent consideration, based on the contracted volume of work achieved in each year up to 2024. The acquisition is expected to complete in the first half of 2018.
Siem, an installer of subsea inter-array cables and provider of repair and maintenance services to the global offshore energy market, employs approximately 100 people.
The company’s unaudited pro-forma 2017 financial results included revenues of $118 million (EUR 97 million) and EBITDA of $30 million (EUR 25 million) after an adjustment to exclude chartering costs of the two vessels being acquired. Siem’s backlog at December 31, 2017, was approximately $146 million (EUR 120 million).
“Siem Offshore Contractors is an experienced provider of services to the offshore renewable energy, oil and gas, and utilities markets with capability that will complement Subsea 7’s existing offering,” Jean Cahuzac, Subsea 7’s CEO, said in a company statement.
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