UK-based subsea engineering, construction and services company Subsea 7 has reached an agreement to acquire the entire issued share capital of Germany-based Siem Offshore Contractors (SOC), along with the inter-array cable lay vessel Siem Aimery and the support vessel Siem Moxie.
The acquisition is subject to competition clearance in Germany and expected to further expand Subsea 7’s presence in the renewables segment.
SOC, a subsidiary of Siem Offshore, is an installer of subsea inter-array cables as well as provides repair and maintenance services to the global offshore renewable energy market.
Both Siem Aimery and Siem Moxie are owned by Siem Offshore’s another subsidiary Siem Offshore Rederi.
As part of the deal, Subsea 7 will pay an initial consideration of €140m subject to adjustments for working capital and net cash in Siem Offshore Contractors.
Siem Offshore may also receive €40m based on the volume of work for SOC in each year up to 2024.
Subsea 7 CEO Jean Cahuzac said: “Siem Offshore Contractors is an experienced provider of services to the offshore renewable energy, oil and gas, and utilities markets with capability that will complement Subsea 7’s existing offering.
“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.”
Last year, SOC has registered adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of €25m on a revenue of €97m.
SOC’s backlog amounted to €120m at the year end, €40m of which relates to the Beatrice offshore wind farm project in the UK portion of the North Sea.
The deal is expected to be completed in the first half of this year and the financial results of SOC will be consolidated within Subsea 7’s Renewables and Heavy Lifting Business Unit.