Siem Offshore and Birch Hill Equity Partners Inc. (“Birch Hill”), together the “Parties”, have entered into an agreement whereby Siem Offshore today has acquired 50 percent ownership in Secunda Canada LP (“Secunda”) at a purchase price of CAD 16.25 million paid in cash.
Secunda has more than two decades of offshore experience in serving the oil and gas industry and currently owns and operates a fleet of six offshore support vessels on Canada’s east coast.
Secunda has a total of 170 employees (onshore and offshore) and has offices at St. John’s and Halifax.
The Parties have agreed that each party shall have an equal Board representation in Secunda.
Birch Hill established Secunda in March 2012 following an asset transaction. The 2012 financial statements for Secunda, covering the period from March – December 2012, includes revenues of CAD 33.4 million and an operating margin of CAD 7.8 million. Total asset was CAD 60.6 million at 31 December 2012. Shareholder equity was CAD 27.8 million.
The ownership in Secunda will give Siem Offshore a strategic position in Canada’s east coast offshore sector. The aim is to grow the business of Secunda and also to develop Siem Offshore’s current business through the position represented by Secunda.