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Subsea 7 acquires Siem Offshore Contractors

By: Tom Russell 01/03/2018 Subsea 7

General Vessels

Subsea 7 S.A. has signed an agreement to acquire Siem Offshore Contractors GmbH and two vessels. Siem Offshore Contractors is a subsea cable installer of export and inter-array cables and also provides repair and maintenance services to the offshore wind market. It employs approximately 100 people.

The acquisition, still subject to competition clearance in Germany, 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 two vessels 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 S.A.

The initial consideration is €140m 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 €40m 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.

Siem Offshore Contractors’ unaudited pro-forma 2017 financial results included revenue of €97m and EBITDA of €25m after an adjustment to exclude chartering costs of the two vessels being acquired. Siem Offshore Contractors’ backlog at 31 December 2017 was approximately €120m, including €40m related to the Beatrice wind farm project, which was also included in Subsea 7’s backlog.

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Subsea 7 acquires Siem Offshore Contractors

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