Ezra acquires Aker Marine ContractorsNews // October 22, 2010
Ezra Holdings Limited has signed a US$250 million deal with Aker Solutions, a subsidiary of Oslo Bors-listed Aker Solutions, to acquire Aker Marine Contractors.
The company said the transaction "will elevate Ezra’s standing to one of the top five players in the global subsea services market."
Under a conditional agreement with Aker Solutions, Ezra will acquire 100 per cent of the Aker Marine Contractors. Ezra and Aker Solutions will also enter into a 50/50 joint venture for the ownership and chartering of AMC Connector, a newly commissioned multi-purpose construction vessel valued at approximately US$300 million.
AMC Connector is expected to be delivered in early 2012 and has secured a long-term charter with a leading global industrial company based in Europe.
The purchase price for AMC is US$250 million to be paid for in the form of cash, equity and convertible securities. Post-transaction, Aker Solutions will become a substantial shareholder in Ezra.
AMC is an established subsea and marine engineering services provider with a comprehensive product offering which covers the installation of subsea/ SURF products and equipment, moorings and floaters, as well as deck floatovers and removal.
The company has a successful track record in complex projects around the globe, including several firsts, such as moving the world’s tallest and heaviest man-made structure (Shell/Statoil’s Troll A and Gulfaks C-Norway project).
Ezra will now be able to provide comprehensive and innovative EPIC and SURF solutions to the global oil and gas industry with AMC’s extensive subsea capabilities.
AMC’s installation and subsea capabilities and Ezra’s fleet of subsea vessels will allow the Group to bid for larger and more complex projects globally.
With the impending delivery of Lewek Crusader, Lewek Falcon (a multifunction support vessel) and the future delivery of Lewek Constellation (a DP3 ice-class deepwater subsea multi-lay vessel with heavy-lift capabilities in excess of 3,000 tonnes), Ezra is now well-positioned to compete in the exclusive group of global top-tier subsea players.
In addition, Ezra and Aker Solutions have entered into a fiveyear co-operation agreement where both parties will cooperate on a preferred supplier and customer basis to offer complete subsea solutions for clients by bundling Aker Solution’s broad product suite with Ezra’s integrated subsea assets and services.
Lionel Lee, Ezra’s Managing Director said: “This strategic alliance with Aker Solutions, one of the world’s top providers of subsea products, will see us working together to compete for EPIC and SURF projects against the world’s top leading players, backed by AMC’s reputable track record with O&G majors. This is in line with our 'Next Lap' growth strategy to be a global integrated offshore services provider."
"We will now be able to provide a comprehensive suite of capabilities, products and assets globally, extending to new geographical markets in the Gulf of Mexico, North Sea, Latin America and Africa.
The transaction, together with Ezra’s existing pool of assets, will create a global business in excess of US$1 billion in size.
Řyvind Eriksen, Chairman of Aker Solutions said: “AMC is a strong engineering and project execution organisation. By becoming part of Ezra, AMC will have access to a larger and rapidly growing fleet of installation vessels covering all IMR and SURF installation segments – including flexible and rigid pipelay with capacity of up to 3,500 metres water depth – which will enable Ezra/AMC to compete with the world’s leading SURF contractors. This will be a transformational move that will propel Ezra and AMC to jointly become one of the world’s top-five SURF contractors.”
DBS Bank Ltd and JP Morgan (SEA) Limited are joint financial advisors to Ezra in the transaction.