ST Engineering Buys US Rig Repair Assets
Singapore Technologies Engineering Ltd (ST Engineering) said it has acquired the rig repair assets of World Marine of Mississippi LLC (WMM) adjacent to its existing yard, VT Halter Marine, Inc. in Pascagoula, Miss. in the U.S., through its subsidiary Vision Technologies Marine, Inc. (VT Marine).
ST Engineering paid $25 million for these assets, comprising a purpose-built facility of 94 acres for heavy marine fabrication and offshore oil and gas rig upgrades, repairs and conversions in the Gulf of Mexico region are within close proximity to VT Halter Marine’s Pascagoula yard.
Since the downturn of the offshore and marine industry, ST Engineering said it has been looking to acquire assets that represent long-term value and can enhance its capabilities while offering scale advantages in the marine repair segment.
The purchase consideration was funded internally and was satisfied fully in cash at closing, and was arrived at, after arm’s length negotiations between the parties, taking into account asset values, current financial performance and future growth prospects, ST Engineering said. The unaudited net book value of the fixed assets of WMM as at December 31, 2016 was about $14 million.