A subsidiary of Gulf Island Fabrication Inc. will acquire all assets, including leasehold interest at Louisiana marine fabrication facilities, of LEEVAC Shipyards LLC through an asset purchase agreement, Gulf Island said Dec. 23.
The marine fabrication facilities are in Jennings, La., and Lake Charles, La., and all the company’s machinery and equipment is included in the $20 million transaction. LEEVAC and its affiliates entered the agreement, Gulf Island said.
About $112 million of incremental contract backlog would be provided through the deal.
Through a working capital adjustment, Gulf Island would receive a reduction for assumption of LEEVAC’s net liabilities and settlement payments on ongoing fabrication projects when the deal closes. Gulf Island will pay a nominal amount of cash at the closing, but could receive cash, the company added. Closing is scheduled for the end of fourth-quarter 2015 or the start of first-quarter 2016.
PPHB LP was Gulf Island’s financial adviser. Jones Walker LLP was its legal adviser.
Gulf Island Fabrication Inc. is an offshore drilling and production platform manufacturer based in Houston.