Singapore’s engineering group buys rig repair yard in U.S.
Singapore Technologies Engineering (ST Engineering) has acquired selected rig repair assets adjacent to its existing yard, VT Halter Marine in Pascagoula, Mississippi, in the US.
ST Engineering, an integrated defense and engineering group specializing in the aerospace, electronics, land systems and marine sectors, said on Friday that the acquisition was made through its subsidiary, Vision Technologies Marine (VT Marine).
The company paid $25 million for the assets of World Marine of Mississippi (WMM), comprising of a purpose-built facility of 94 acres for heavy marine fabrication, offshore oil and gas rig upgrades, repairs, and conversions.
“Since the downturn of the offshore and marine industry, the group has been looking to acquire assets that represent long-term value and can enhance its capabilities while offering scale advantages in the marine repair segment.
“The acquired assets, which are situated in a prime location in the Gulf of Mexico and with close proximity to VT Halter Marine’s Pascagoula yard enable the group to leverage resources and derive greater synergies in its ship repair business,” said ST Engineering.
The company added that the purchase consideration was funded internally and was satisfied fully in cash at closing. The unaudited net book value of the fixed assets of WMM as of December 31, 2016, was about $14 million.