Fugro divests trenching and cable lay business
Global Marine Group has agreed to acquire Fugro’s trenching and cable lay services business for about US$73 million in shares.
The acquisition of Fugro’s trenching and cable lay services business involves the transfer of 23 Aberdeen-based Fugro staff and one vessel (Symphony), two Q1400 trenchers, and two work class remotely operated vehicles.
Built in 2011, the Symphony is a multi-purpose vessel with 1400sq m 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 characterization and asset integrity services to GMG.
Since the founding of Fugro’s trenching and cable lay services business in 2012, Fugro has established a strong presence in the renewables market, working with offshore wind farms including Lincs Wind Farm, Humber Gateway, Gwynt y Môr and Rampion. The business has also conducted multiple operations in oil and gas for major oil companies such as Shell and BP.
“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 subject to customary closing conditions, and is expected to close in the fourth quarter 2017.