An investment affiliate of the private equity investment firm, J.F. Lehman & Company (JFLCO), has agreed to acquire Global Marine Group (GMG).
The sale excludes the previously announced sale of GMG’s 49% joint venture with Huawei Marine Networks.
Total base consideration for 100% of GMG, excluding HMN, will be approximately USD 250 million in cash, subject to customary closing adjustments, plus a potential future earn-out should JFLCO and its investment affiliates achieve a specified multiple of their invested capital.
The transaction is expected to close by the end of the first quarter of 2020, subject to customary closing conditions.
Deutsche Bank Securities and ABN AMRO acted as M&A advisors to Global Marine in connection with the transaction.
“Global Marine Group has been a market leading provider of critical marine services for decades and is an exciting addition to the JFLCO portfolio of companies,” said Alex Harman , a Partner with JFLCO.
“The Company’s strong market positions, comprehensive suite of unique services and assets, and talented workforce align well with our investment strategy.” Will Hanenberg , a Principal at JFLCO, added: “We believe the Company has significant opportunities for growth in its core telecommunications and offshore wind markets, and we look forward to supporting the Global Marine Group team as it executes its exciting vision for the future.”
GMG consists of three business units: Global Offshore, delivering the company’s cable installation, repair and trenching services to the offshore renewables, utilities and oil & gas markets; CWind, delivering topside, splash zone and subsea engineering services to the offshore renewables and utilities market; and Global Marine, providing fibre optic cable solutions to the telecommunications and oil & gas markets. The company also has two successful joint ventures in China, SBSS and HMN.
Headquartered in Chelmsford, UK, GMG owns and operates a fleet comprising three specialist cable installation and repair vessels, four maintenance vessels, and 19 crew transfer vessels. Additionally, the company has a range of subsea equipment including eight trenchers and working class ROVs.
Dick Fagerstal , Chairman of Global Marine Group, said: “I believe JFLCO is an excellent partner for GMG to help facilitate the next phase of our growth. Together with Ian Douglas, CEO of GMG, and the rest of the Global Marine Group management team, we look forward to leveraging JFLCO’s extensive maritime experience and considerable capital base in further developing GMG’s core business in the telecommunication and offshore wind markets.”