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

People & Company News

Wärtsilä Expects 5% Sales Growth

Wärtsilä announced its third quarter results, reporting that it sees good development in order intake and profitability. According to Wärtsilä, third quarter

MacGregor Reorganizes into 7 Operative Divisions

MacGregor, part of Cargotec, announces changes in its operative structure and starts a reorganization into seven operative divisions which will become effective on January 1, 2015.

Iridium Partners with Trimble to Support Expansion

Iridium Communications Inc. announced an agreement with Trimble that expands the company's use of satellite communications in its core Transportation and Logistics

Energy

MEPC Makes Progress on Energy Efficiency, Emissions

The Marine Environment Protection Committee (MEPC) of the International Maritime Organization (IMO) met for its 67th session from October 13-17, 2014, at IMO Headquarters in London.

Wärtsilä Expects 5% Sales Growth

Wärtsilä announced its third quarter results, reporting that it sees good development in order intake and profitability. According to Wärtsilä, third quarter

Total CEO Plane Crash: Russian Prosecutors Detain More Suspects

Russian prosecutors detained four Moscow airport workers and denied bail to the driver of a snow plough which hit a private jet killing the CEO of French oil company Total earlier this week,

News

MEPC Makes Progress on Energy Efficiency, Emissions

The Marine Environment Protection Committee (MEPC) of the International Maritime Organization (IMO) met for its 67th session from October 13-17, 2014, at IMO Headquarters in London.

Wärtsilä Expects 5% Sales Growth

Wärtsilä announced its third quarter results, reporting that it sees good development in order intake and profitability. According to Wärtsilä, third quarter

MacGregor Reorganizes into 7 Operative Divisions

MacGregor, part of Cargotec, announces changes in its operative structure and starts a reorganization into seven operative divisions which will become effective on January 1, 2015.

Offshore Energy

Nordic Wins with Noble

Nordic Maritime, a leading offshore service operator, today announced a five year time charter for its DP2 IMR Subsea vessel, Mokul Nordic, which has been awarded by Noble Energy,

Pemex Suspends Eviction of Workers in Campeche

Due to the behavior shown by the low pressure system in the Gulf of Mexico, whose career was diverted in the last hours, the Technical Analysis Group Emergency

Total CEO Killed in Moscow Runway Accident

Private jet collided with snow plow during takeoff; Total's CEO a defender of Moscow policies. Insiders Boisseau and Pouyanne long seen as potential successors.

 
 
Maritime Standards Naval Architecture Navigation Offshore Oil Pod Propulsion Salvage Ship Electronics Ship Repair 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: 0.2296 sec (4 req/sec)