Global Marine to Take Over Fugro’s Trenching and Cable Laying Division
Thursday 12 October 2017
Global Marine Group (GMG) has entered into an agreement to acquire Fugro’s trenching and cable lay services business.
The purchase consideration, valued at approximately $73 million, consists of the issuance to a subsidiary of Fugro of a 23.6% equity interest in Global Marine Holdings, valued at US$65 million, and an obligation of Global Marine to pay Fugro US$7.5 million within one year pursuant to a secured vendor.
The acquisition of Fugro’s trenching and cable lay services business involves the transfer to GMG of 23 Fugro employees located in Aberdeen, as well as one vessel (M/V Symphony), two Q1400 trenchers, and two work class ROVs. Built in 2011, the M/V Symphony, a multi-purpose vessel with a 1,400m² deck space, will join GMG’s cable installation and maintenance fleet.
In addition, as part of this transaction, Fugro will become the preferred provider of marine site characterisation and asset integrity services to GMG.
“This acquisition is another deliberate step in our strategic plan, adding extensive capabilities of the Fugro trenching and cable lay team to the Global Marine Group and further equipping us with proven assets to support our growth plans,” said Ian Douglas, CEO of Global Marine Group. “I am delighted that Fugro identified us as the right partner to advance their trenching and cable lay business and I am looking forward to welcoming the Aberdeen based trenching team to our corporate family. We are committed to our vision of engineering a clean and connected future and we will continue to build, align and adapt our business in order to meet the evolving needs of our customers.”
“A key objective of Fugro’s ‘Building on Strength’ strategy is to seek a partnership or divest our construction and installation related marine activities,” said Paul van Riel, CEO of Fugro. “We have taken a major step forward in delivering on this strategic objective by contributing our trenching and cable lay services business towards a promising partnership with Global Marine Group. Fugro will participate in a profitable and diversified business with solid growth potential. This step will also support Fugro’s growth in the nautical market segment.”
The transaction is expected to close in the fourth quarter 2017.