Fugro divests Asia Pacific subsea services businessCompany News // August 5, 2016
Fugro NV and Shelf Subsea Holdings UK Ltd have announced that they have signed an agreement under which Shelf Subsea will acquire the Fugro subsea services business in Asia Pacific for approximately Euros 14 million cash and a significant issuance of around 25 per cent equity in Shelf Subsea to Fugro. With the divestment, Fugro said it was taking another important step in its strategy to focus on its core survey and geotechnical business. The deal includes thr transfer of one owned vessel, three chartered vessels and 18 ROVs, along with approximately 285 Fugro employees and the transfer of Fugro subsea offices in Perth and Singapore.
Shelf Subsea was formed in 2015 by private equity investors SCF Partners, Viburnum Funds and senior management, and generated revenue in 2015 of around A$40 million (Euros 27 million). It operates from offices in Perth and Singapore and on closing of the transaction will become a leading subsea services player in the Asia Pacific region providing inspection, maintenance and repair, light installation, air and saturation diving services and construction support.
Paul van Riel, CEO Fugro, said: “The transaction represents an important strategic step for Fugro to focus our portfolio around our core geotechnical, survey and related businesses. We are pleased to have acquired a stake in Shelf Subsea going forward to retain upside on our investment and to cement the relationship between our companies. Within the relationship, Fugro and Shelf Subsea will provide services to each other as applicable.
"We believe Shelf Subsea will provide excellent long term opportunities for our highly qualified management and staff that are transferring. We also believe clients will benefit from Shelf’s increased capability which sees the provision of subsea services as its core mission. We are looking forward to working with Shelf Subsea and contributing to its successful development.”