DeepOcean ASA acquires CTC Marine Projects LtdNews // September 5, 2006
DeepOcean ASA in Norway has signed a Heads of Agreement with the shareholders of CTC Marine Projects Ltd (CTC) in the UK to acquire the company for £76 million, including £15.5 million of net interest bearing debt.
The transaction is subject to a final Share Purchase Agreement and a successful period of due diligence, and is expected to be completed by the end of September.
"We are pleased to welcome the businesses of CTC into the DeepOcean Group. CTC provides an immediate and substantial entry into the submarine trenching and trenching-dependent flexible product installation market. CTC has a leading position in the subsea service market and will together with our own vessels, ROVs and survey services give us the opportunity to be a more attractive subsea service provider both to the main contractors as well as to the oil companies," said DeepOcean CEO Kåre Johannes Lie.
The purchase of CTC will be financed through new loans, cash and with an issue of new shares in DeepOcean to the seller. A significant amount of the consideration is linked to CTC’s future financial performance.
CTC will continue its business as a stand-alone subsidiary in the DeepOcean Group, and dounder and main shareholder Charles Tompkins will continue as Chairman of the Board of Directors of CTC, and will become one of the main shareholders in DeepOcean, and join its Board of Directors.
"DeepOcean and CTC is a perfect match both strategically and culturally. This agreement will provide, in the short term, access to a larger vessel fleet, improved access to the important Norwegian and Mexican markets and the ability to offer bundled pipe-lay support services. In the medium term, this agreement will strengthen the combined company’s global opportunities, and deliverer both economies of scale and create value," said Tompkins.