Deep Down to Acquire Cuming Corp.

Tuesday, May 04, 2010

Deep Down, Inc. (OTC Bulletin Board: DPDW), an oilfield services company specializing in products and services for the deepwater and ultra-deepwater oil and gas industry, announced entry into a conditional purchase agreement to acquire Cuming Corporation. Privately-held Cuming Corporation was founded in 1980 and is a manufacturer of buoyancy and insulation products with a range of deepwater oil & gas industry applications. Cuming's operations are complementary with those of Deep Down's Flotation Technologies subsidiary, which produces syntactic foam products for customers in the oil and gas, defense, scientific and industrial sectors.

At the closing of the transaction, Deep Down expects to acquire 100% of the stock of Cuming Corporation for approximately $37m in the form of a combination of cash and shares of Deep Down and assume approximately $13m of net liabilities based upon Cuming Corporation's balance sheet as of December 31, 2009. In 2009, Cuming Corporation generated revenue and gross profit of approximately $73m and $15m, respectively. As of March 31, 2010, the business had contracted backlog and signed letters of intent representing approximately $138m and $32m of orders, respectively, the majority of which are scheduled for production in 2010. Consummation of the transaction remains subject to several conditions including Deep Down's obtaining adequate external financing to fund the approximately $34m cash component of the purchase price.

Separately, Deep Down announced the appointment of Gay Stanley Mayeux as Vice President and Chief Financial Officer of the company, effective immediately. Former CFO Eugene L. Butler will continue to serve as Executive Chairman of the company. Mayeux brings over 25 years of financial management experience in the energy sector to Deep Down. Prior to joining Deep Down, Mayeux served as Vice President Finance and Treasurer of Willbros Group, where she played a pivotal role in that company's financial turnaround. Mayeux also previously served as Vice President and Corporate Controller of Weatherford International where she worked with Butler and assisted him in developing and implementing a successful financial turnaround strategy for Weatherford. Ms. Mayeux has also held senior financial positions at energy services companies including McDermott International and Hydril Company. Mayeux is a CPA and began her career at Deloitte & Touche.
 

Maritime Reporter July 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Hyde Marine to Display Ballast Water Tech at SMM

Hyde Marine, Inc., a ballast water treatment technology company, will showcase its Hyde GUARDIAN Gold HG250G Ballast Water Treatment System (BWTS) at the upcoming Shipbuilding,

Report: Ports Lack Maintenance Support

The latest Barometer Report from Trelleborg has revealed a huge gap in the maintenance requirements of port owners and operators, and the support that suppliers are able to provide.

Pine Galaxy to Arrive SF Bay Wednesday

The disabled mixed-products tanker Pine Galaxy is expected to arrive in San Francisco Wednesday morning. The ship is being towed by commercial tug to San Francisco Bay.

 
 
Maritime Security Naval Architecture Navigation Offshore Oil Pipelines Port Authority Salvage Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1269 sec (8 req/sec)