Kvaerner Divests North American Construction Business

SeaDiscovery.com
Monday, December 09, 2013

Kvaerner sells its onshore construction business in North America to Matrix Service Company for an enterprise value of $80.3 million. The divestment enables Kvaerner to focus its efforts on further developing its upstream oil and gas business.

"This transaction is an important step in our strategy to focus our operations. All of Kvaerner's operations will now be focused on delivering offshore installations and onshore plants to our upstream oil and gas customers. The sale also provides us with increased strength to further develop Kvaerner's position in our target markets," said Jan Arve Haugan, President & CEO of Kværner ASA.

A definitive agreement was signed between Kværner AS and Matrix Service Company. In the transaction, Matrix will receive ownership of certain assets of Kvaerner North American Construction, Inc. in the U.S. and the shares in Kvaerner North American Construction, Ltd. in Canada. The business will continue to be led by their existing management and operational teams. In 2012, the Business delivered revenues of about $280 million and an EBITDA margin of approximately 5%. In total, the Business has about 200 employees in the U.S. and Canada. Kvaerner will retain the assets and liabilities related to the contract with Longview Power LLC, including any financial effects of the arbitration.

John Hewitt, President and Chief Executive Officer of Matrix commented, "The Business has over 35 years of successful delivery of maintenance and capital construction services, and this transaction will provide Matrix Service Company with a unique service offering that complements and enhances our existing platform."

In line with the upstream focused strategy, Kvaerner will continue to develop its Houston based entity focusing on offshore field development, Kvaerner Field Development Inc. Following the sale, Kvaerner will not have any remaining operations in the U.S. within the downstream and industrials segment, and remaining legacies within the segment will be presented as discontinued operations in the company's accounts going forward.

The transaction will be settled in cash at closing and is expected to be completed in late 2013, subject to anti-trust approval in the U.S. The financial effects of the transaction are expected to be recognized in Kvaerner's fourth quarter 2013 accounts subject to final closing.

kvaerner.com
 

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

People & Company News

RS to Exhibit at SMM 2014

Russian Maritime Register of Shipping (RS) announced it will exhibit at Shipbuilding, Machinery and Marine Technology (SMM) International Trade Fair September 9-12, 2014 in Hamburg, Germany.

Green Marine, ACPA Partner to Reduce Environmental Footprint

Green Marine and the Association of Canadian Port Authorities (ACPA) have entered into a Memorandum of Understanding with the goal of jointly expanding efforts

SC Ports’ Earnings, Volumes Surpass Plans

July cargo volumes deliver strong start to new fiscal year SC Ports Authority reported 2014 fiscal year-end operating earnings of $14.3 million, 20.7 percent over the organization's financial plan.

Energy

Update: LOOP Terminal Shutdown

LOOP's Offshore Marine Terminal suspended its crude oil offloading operations on August 13 while investigating an oil sheen discovered along the pipeline. According to the terminal,

GoM Sale Yields $110m in High Bids

As part of President Obama’s all-of-the-above energy strategy to continue to expand safe and responsible domestic energy production, today’s Western Gulf of Mexico Lease Sale 238 attracted $109,

Ohio River Reopens as Oil Spill Clean-up Progresses

A 15-mile section of the Ohio River was reopened for limited traffic on Wednesday as clean-up of a 5,000-gallon fuel oil spill continued, the U.S. Coast Guard said on Wednesday.

News

Update to Fire Damage to Australian Patrol Boat

Armidale Class Patrol Boat HMAS Bundaberg suffered significant damage due to a fire which occurred on Monday, August 11, 2014 in Brisbane. The boat was undergoing

Water Monitoring to Continue at Western Gulf Ports

A water monitoring network that helps keep port traffic moving is the responsibility of the Conrad Blucher Institute (CBI) for Surveying and Science at Texas A&M University-Corpus Christi.

Green Marine, ACPA Partner to Reduce Environmental Footprint

Green Marine and the Association of Canadian Port Authorities (ACPA) have entered into a Memorandum of Understanding with the goal of jointly expanding efforts

Offshore Energy

Update: LOOP Terminal Shutdown

LOOP's Offshore Marine Terminal suspended its crude oil offloading operations on August 13 while investigating an oil sheen discovered along the pipeline. According to the terminal,

GoM Sale Yields $110m in High Bids

As part of President Obama’s all-of-the-above energy strategy to continue to expand safe and responsible domestic energy production, today’s Western Gulf of Mexico Lease Sale 238 attracted $109,

Russia Sanctions Could Slow Norwegian Arctic Exploration

Western sanctions against Russia may slow down exploration for oil and gas on both the Norwegian and Russian side of the Arctic Barents Sea, lobby group Norwegian Oil & Gas told Reuters on Wednesday.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Offshore Oil Port Authority Ship Repair 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: 0.1952 sec (5 req/sec)