SKILLED to buy OMSA

SKILLED Group today announced that it will move to 100% ownership of the Offshore Marine Services Alliance joint venture (OMSA) and intends to combine OMSA and its existing Broadsword Marine operations to create a single marine services business with broad operational and project capability.

SKILLED currently has a 50% interest in OMSA and will acquire the remaining 50% interest from PB Sea-Tow Holdings (BVI) Limited (PB) for A$6.9 million (net of A$3.7 million incremental cash acquired), payable in January 2015. This represents 50% of OMSA’s estimated contracted net cashflows for the period to end June 2015.

In addition, SKILLED and PB will share equally in the outcome of a small number of contingent items that are part of OMSA’s current business, including vessel demobilisations and outstanding contractual issues.

OMSA has recently been awarded new work within its existing Gorgon Project contract.

The transaction is expected to be EPS accretive and cash positive from completion. OMSA recently paid a A$6.13 million dividend to each of SKILLED and PB. Commenting on the acquisition, SKILLED’s Managing Director and Chief Executive Officer, Mick McMahon, said, “As the Gorgon Project moves from its construction to operational phase, we are pleased that OMSA’s systems, expertise and high quality team will become a fully integrated part of SKILLED.”

“There remains an attractive pipeline of operational and project opportunities in the offshore market, and we believe that the combination of OMSA and Broadsword will position us well to capitalise on these opportunities.”

“Together Broadsword and OMSA have a broad operational base and extensive capabilities, with synergies to be realised from sharing resources. There remains an attractive pipeline of operational and project opportunities in the offshore market, and we believe that the combination of OMSA and Broadsword will position us well to capitalise on these opportunities”, McMahon said. The transaction will have economic effect from 1 November 2014.

OMSA is a marine logistics business, currently providing tugs, barges and small vessel marine support services on the Gorgon Project, offshore W. Australia, under a contract that runs until December 2015. At present OMSA has 21 vessels working on the Gorgon Project, all chartered on ‘back to back’ arrangements with the client contract. SKILLED Offshore provides manning and related services to OMSA, which will continue after completion of this transaction.