Subsea 7 acquires Siem cable unit
Deal agreed to buy offshore contractors business and two vessels
Subsea 7 is to acquire cable lay business Siem Offshore Contractors, as well as the Siem Aimery and Siem Moxie vessels, to expand its presence in the renewables sector.
The deal, which is subject to competition clearance in Germany, is priced at an initial consideration of €140m.
The acquisition includes the entire issued share capital of Siem Offshore Contractors, which has about 100 employees.
Array cable lay vessel Siem Aimery and support ship Siem Moxie are owned by Siem Offshore Rederi, which together with Siem Offshore Contractors are wholly owned subsidiaries of Siem Offshore.
Subsea 7 will fund the deal through its own cash resources, with the acquisition expected to be completed in the first half of 2018.
Subsea 7 chief executive 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.”
Siem Offshore has terminated discussions with Subsea 7 over the potential sale of cable lay business Siem Offshore Contractors.
The companies had been in discussions over a deal last year, but terminated the talks in November.
Image: Siem Aimery and Siem Moxie vessels (Siem)