Fugro and Global Marine Holdings LLC have signed an agreement under which GMG will acquire Fugro’s trenching and cable laying business in exchange for an equity stake of around 24% in the combined business valued at $65 million, and a one year secured vendor loan of $7.5 million.
According to Fugro, the transaction also involves transfer of 23 Aberdeen based employees, 1 vessel, 2 trenchers and 2 remotely operated vehicles.
Paul van Riel, CEO Fugro: “A key objective of Fugro’s ‘Building on Strength’ strategy is to seek a partnership or divest our construction and installation related marine activities. We have taken a major step forward in delivering on this strategic objective by contributing our trenching and cable laying business towards a promising partnership with GMG.”
“Fugro will participate in a profitable and diversified business with solid growth potential. This step will also support Fugro’s further growth in the nautical market segment,” added Paul van Riel.
Ian Douglas, CEO Global Marine Group: “I am looking forward to welcoming the Aberdeen based trenching team to our corporate family and growing our asset and capabilities base. As we continue to carefully build and develop our business in support of our long-term strategic view, we are delighted to partner with Fugro, with its long standing world-wide expertise in many segments of the offshore services markets.”
The acquisition of Fugro’s trenching and cable laying business provides GMG with high-end capabilities, significantly strengthening its service offering. Fugro will participate in a more diversified business in which cable installation services are complemented with long-term telecom cable and windfarm maintenance services and sales of subsea telecom systems. In addition, Fugro will become the preferred provider of marine site characterization and asset integrity services to GMG.