Global Marine Holdings LLC has signed an agreement with Fugro to take over the latter's trenching and cable laying business.
Fugro sought to divest this part of its organisation as it does not consider the trenching and cable laying business part of its core marine construction and installation activities.
GMG
The Global Marine Group (GMG) is a global supplier of subsea cable installation and maintenance services in four market segments: telecoms, offshore renewables, power and oil & gas. The company operates worldwide from its main offices in Chelmsford (United Kingdom) and Singapore.
GMG acquires Fugro's division in exchange for an equity stake of around 24% in the combined business valued at USD 65 million, and a one year secured vendor loan of USD 7.5 million. The transaction involves the transfer of 23 Aberdeen based employees, 1 vessel (the Fugro Symphony), 2 trenchers and 2 remotely operated vehicles.
The acquisition of Fugro’s trenching and cable laying business provides GMG with high-end capabilities, significantly strengthening its service offering.
Preferred Provider
Fugro will participate in a more diversified business in which cable installation services are complemented with long-term telecom cable and windfarm maintenance services and sales of subsea telecom systems. In addition, Fugro will become the preferred provider of marine site characterisation and asset integrity services to GMG.
The transaction is subject to customary closing conditions. The expectation is that the transaction will be closed in the fourth quarter of 2017.
