Subsea 7 SA said March 1 it 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 acquisition will further expand Subsea 7’s presence in the renewables segment.
Siem Offshore Contractors is a well-known installer of subsea inter-array cables and provides repair and maintenance services to the global offshore renewable energy market. It employs approximately 100 people. The vessels, Siem Aimery and Siem Moxie, are owned by Siem Offshore Rederi AS. Siem Offshore Contractors GmbH and Siem Offshore Rederi AS are wholly owned subsidiaries of Siem Offshore Inc., which is a related party to Subsea 7 SA.
The initial consideration is €140 million (US$172 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 €40 million (US$49 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 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.
The transaction is expected to be EPS accretive in 2018.
“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,” Jean Cahuzac, Subsea 7’s CEO, said.