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

People & Company News

Newport International Boat Show Award Winners

Newport Exhibition Group, owners and producers of the Newport International Boat Show, announced today the results of this year’s Newport For New ProductsTM (NFNP) Awards.

China Merchant Boosts Efficiency of VLCCs with Jotun HP

China Merchant Energy Shipping Co., Ltd (CMES) will upgrade the antifouling solution on their VLCCs New Builds at Dalian Shipbuilding Industry Co., Ltd. (DSIC)

ESAB Boasts Over a Century of Technological Innovation

September 2014 marks the 110th anniversary of ESAB Welding & Cutting Products. A world leader in welding and cutting technology, with the broadest, most complete

Energy

Gazprom Scraps Plan to Cut Gas Deliveries

Russia's Gazprom scrapped a plan to cut gas exports to Romania by 9 percent on Saturday and by 5 percent on Sunday, Romania's Energy Minister Razvan Nicolescu said.

Poland Received Less Gas Than Requested from Gazprom

Poland's gas pipeline operator Gaz-System said the country received about 20 million cubic metres of natural gas on Friday from the eastern direction, less than

China Aug Power Output Falls First Time in 4 yrs

China's power output, a bellwether for economic activity, posted its first annual decline in more than four years in August, adding to evidence that the world's

News

USCG Respond to Grounded Vessel near Pleasant Harbor, Washington

The Coast Guard and Washington State Department of Ecology are responding to a report a of 65-foot pleasure craft aground near Pleasant Harbor in Brinnon, Washington, Sunday morning.

Two Long Beach Port Funded Projects Opened

In a festive ceremony, two Port of Long Beach grant-funded environmental projects had their grand openings yesterday,  at the Century Villages of Cabrillo homeless

Newport International Boat Show Award Winners

Newport Exhibition Group, owners and producers of the Newport International Boat Show, announced today the results of this year’s Newport For New ProductsTM (NFNP) Awards.

Offshore Energy

Vard Orders Rolls-Royce Equipment for Rem OCV/AH

Rolls-Royce has won a £19m contract with the Norwegian shipbuilding group Vard to deliver deck machinery, propulsion and engines to a new offshore construction

First Havyard WE Design Delivered to Fafnir Offshore

Havyard Ship Technology's build 120 'Polarsyssel', a Havyard 832 L WE design, was delivered to Fafnir Offshore yesterday. It will go straight on assignment for

Brazil's Óleo e Gas, OSX Renegotiate FPSO Contract

Óleo e Gas Participações SA, the Brazilian oil producer that is under bankruptcy protection, and former sister company OSX Brasil SA completed on Friday a plan

 
 
Maritime Contracts Maritime Standards Naval Architecture Pipelines Pod Propulsion Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
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: 0.1551 sec (6 req/sec)