Fugro has signed an agreement to sell its trenching and cable laying business to UK-based subsea cable installation and maintenance company Global Marine Group (GMG).
Fugro will transfer 23 staff, OCV Fugro Symphony, two trenchers and two ROVs over to GMG, and take an equity stake of around 24% in the combined business, valued at $65m, and a one year secured vendor loan of $7.5m.
Paul van Riel, CEO of Fugro, commented: “A key objective of Fugro’s ‘Building on Strength’ strategy is to seek a partnership or divest our construction and installation related marine activities. We have taken a major step forward in delivering on this strategic objective by contributing our trenching and cable laying business towards a promising partnership with GMG. Fugro will participate in a profitable and diversified business with solid growth potential. This step will also support Fugro’s further growth in the nautical market segment.”
The deal strengthens GMG’s high-end capabilities, while Fugro will become the preferred provider of marine site characterisation and asset integrity services to GMG.
Completion of the transaction is scheduled before the end of the year.