Royal IHC, a Dutch supplier of equipment, vessels, and services, is buying Oceanteam’s Dutch-based engineering and consultancy company, KCI the Engineers B.V.
Oceanteam and Royal IHC have executed a signing protocol under the terms of which IHC will acquire all of the outstanding share capital of Oceanteam’s KCI the Engineers B.V. subject to certain conditions precedent through an agreed sale and purchase agreement.
The transaction is not subject to regulatory approval, Oceanteam said on Wednesday.
IHC plans to maintain KCI as an independent brand and operating company which will continue to serve external clients whilst also working on IHC projects. Oceanteam will continue to have access to all intellectual property built up over the years in relation to Oceanteam’s vessels, carousels and other assets.
Furthermore, Oceanteam continues to have access to KCI’s engineering capabilities through a long term Service Level Agreement (SLA) between IHC and Oceanteam. This will provide Oceanteam with all necessary engineering support to pursue further growth of its Solutions and Shipping divisions. Oceanteam will continue to comprise of two operating segments, Shipping and Solutions.
Diederik van Rijn, IHC Group Executive Director said: “The acquisition of KCI fits within the overall strategy of IHC to further develop into a provider of knowledge and technology based services and products. KCI has built up an impressive track record in providing engineering solutions for the Oil & Gas, Offshore Wind and giant ferris wheels market segments and complements the other engineering centers of expertise within the group.”
Haico Halbesma, CEO of Oceanteam explained: “IHC presented a strategy that fits with the next step KCI has to take in terms of further expanding its unique designs and credentials list to become an even stronger partner for its clients. It also emphasizes the confidence in the engineering capabilities and idea realization skills of the KCI team. Their outstanding engineering projects have caught the attention of many clients over the past years, including amongst others the group that realizes the biggest ferris wheel that is now being built on Bluewater’s Island in front of the Dubai coastline.”
Oceanteam will use the proceeds of the sale to improve the company’s liquidity and to reduce outstanding debts.
“By securing continued access to KCI’s services for our own Solutions business this is definitely a win-win transaction,” concluded Halbesma.