Global Marine Group, which specialises in a range of services for the offshore oil and gas, renewables and telecoms industries, is to be sold to a new owner after an agreement was reached between HC2 and JF Lehman & Company.
HC2 Holdings confirmed that a subsidiary of Global Marine Holdings, in which HC2 holds an approximate 73% equity interest, has entered into a definitive agreement to sell Global Marine Group (GMG) to an investment affiliate of JF Lehman & Company.
The sale includes GMG’s operating subsidiary Global Marine Systems Limited, a provider of offshore engineering services to the telecommunications, renewables, and oil and gas industries, along with several joint ventures, and excludes the previously announced sale of GMG’s 49% joint venture with Huawei Marine Networks Co Limited.
The total base consideration for 100% of GMG (excluding HMN) will be approximately US$250M in cash, subject to customary closing adjustments, plus a potential future earn-out should JF Lehman & Company and its investment affiliates achieve a specified multiple of their invested capital.
Combined with the sale of GMG’s stake in HMN at a valuation of US$140M (of which approximately US$85M will be paid at closing, currently scheduled in the first quarter of 2020, with the remaining interest under a two-year put option), the total valuation for HC2’s Marine Services Segment (73% owned by HC2) is US$390M.
GMG chief executive Ian Douglas said, “We’re about to embark on a new chapter for Global Marine Group, and I want to thank the HC2 team for being effective owners of our business.
“The purchase by JF Lehman provides the certainty that we need to continue to build our business across the telecommunications and utilities markets, deepening and widening the service we provide to our customers. We are fortunate to operate in markets that are transforming the world and we support the rising demand for connectivity of global communications and offshore renewable energy sources.”