Boskalis sells terminal activities and eight AHTS to LamnalcoNews // July 1, 2011
Royal Boskalis Westminster (Boskalis) has reached an agreement with The Rezayat Group of Saudi Arabia (Rezayat) to sell SMIT's terminal and AHTS transport activities to Lamnalco Ltd (Lamnalco). Boskalis and Rezayat each own a 50 per cent stake in Lamnalco.
Lamnalco will pay approximately US$450 million and Boskalis will receive a net cash sum equaling around 75 per cent of the consideration.
Lamnalco will acquire all of SMIT's terminal activities, with the exception of the terminal activities of Rebras (Brazil) and of the joint ventures in Egypt, and Singapore (Keppel-SMIT).
In addition Lamnalco will take over eight L-class AHTS vessels from SMIT that are currently part of the SMIT Transport activities.
On balance the activities sold represented in 2010 an EBITDA of around US$55 million.
SMIT Terminals and Lamnalco both hold a leading position in the global market for specialized services to oil and gas terminals. This is a strong growth market, driven by growing global demand for energy, in particular liquefied natural gas (LNG).
Boskalis said the combination will create a leading world-class player and an excellent platform for further growth.
"The tie-up with Lamnalco will create a resourceful company with a clear focus," said Boskalis. "Furthermore thanks to its independent structure Lamnalco is able to implement a very efficient capital structure, taking full advantage of the possibilities within the financial markets."
The combination of these two players will create considerable operational and commercial synergies. Currently operating over 50 terminal contracts, the combined entity employs more than 2,000 staff on over 150 vessels and is active in more than 30 countries across five continents.
The transaction is expected to be executed in the second half of 2011, subject to satisfaction of the conditions customary for transactions of this nature.