Subsea engineering, construction and services company Subsea 7 has announced the acquisition from K&S Baltic Offshore of its 50% shareholding in Seaway Heavy Lifting.
In addition to 50% interest already owned by Subsea 7, the company made an offer to acquire the other half in Seaway Heavy Lifting, a specialist offshore contractor which operates two heavy lift vessels, in January this year. Seaway Heavy Lifting employs 550 people and is headquartered in the Netherlands.
The subsea company said on Monday that, following signing and completion, after close of business on March 10, 2017, Seaway Heavy Lifting and its subsidiaries became wholly-owned by Subsea 7.
Subsea 7 paid cash consideration of $279 million on completion and an additional consideration of up to $40 million will be paid in 2021 on the condition that certain performance targets are met.
Jean Cahuzac, CEO, said: “Our investment to acquire the remaining shares in Seaway Heavy Lifting, such that it becomes a wholly-owned subsidiary of our group, is aligned with our strategy to grow and strengthen our business for the long-term. Consolidating Seaway Heavy Lifting into the group increases our participation in Renewables, Heavy Lifting and Decommissioning services. These are areas where we expect market activity to increase and see potential to grow our market share.”
The company added it will report revenues and net operating income from Seaway Heavy Lifting within a new Business Unit ‘Renewables and Heavy Lifting’. This new reporting structure will be reflected within the group’s first quarter results, which will be announced on April 27, 2017.