Gulf Island Fabrication acquires LEEVACYard News // January 4, 2016
Gulf Island Fabrication Inc has executed an asset purchase agreement with LEEVAC Shipyards LLC and its related affiliates under which LEEVAC will sell to a Gulf Island subsidiary substantially all of LEEVAC’s assets, including LEEVAC’s leasehold interests at its marine fabrication facilities in Jennings, Louisiana and Lake Charles, Louisiana, along with all of LEEVAC’s machinery and equipment. In addition, the transaction will provide approximately US$112.0 million of incremental contract backlog. The purchase price is US$20.0 million.
After taking certain liabilities into account, Gulf Island expects to pay a nominal amount of cash at closing and may, in the alternative, receive cash at closing. The potential transaction is subject to certain customary closing conditions and is expected to close at the end of the fourth quarter of 2015 or beginning of the first quarter of 2016.
Kirk Meche, President and Chief Executive Officer of Gulf Island, said: "The acquisition of the LEEVAC assets further diversifies our business, enhances our marine fabrication and maintenance and repair capabilities, and provides our company with facilities in key strategic locations of Lake Charles and Jennings, Louisiana.”