Subsea 7 Buys Siem Offshore Contractors and Two Vessels
Subsea 7 has signed an agreement to acquire Siem Offshore Contractors GmbH and two vessels, subject to competition clearance in Germany.
The acquisition will include the entire issued share capital of Siem Offshore Contractors, the inter-array cable lay vessel Siem Aimery and the support vessel Siem Moxie.
The initial consideration is EUR 140 million subject to adjustments for working capital and net cash in Siem Offshore Contractors and a deferred contingent consideration, based on the contracted volume of work achieved in each year up to 2024, which is not expected to exceed EUR 40 million over the period.
The considerations are supported by an independent third party valuation and will be funded from Subsea 7’s cash resources, the company said.
The transaction is expected to be completed in the first half of 2018 and the financial results of Siem Offshore Contractors will be consolidated within Subsea 7’s Renewables and Heavy Lifting Business Unit.
Jean Cahuzac, Subsea 7 CEO, said: “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. We believe that this acquisition opportunity will enhance the offshore renewables service we offer as a full lifecycle partner to our clients for their offshore energy developments.”