HC2 acquires Global Marine Systems

HC2 Holdings has acquired Bridgehouse Marine Ltd, the parent holding company of Global Marine Systems Ltd, the well-known cable installation and maintenance company.

Philip Falcone, HC2’s chairman, president and chief executive officer, said, “We are acquiring the world’s most experienced undersea cable installation and maintenance service provider at a time when significant opportunities exist globally in terms of telecoms, oil and gas and offshore power requirements.

“I am delighted that our ambitions for Global Marine have the support of an investor that has the vision necessary to enable us to realise the substantial growth potential in the coming years,” said Ian Douglas, CEO of Global Marine. “Together, we will have the opportunity to develop the services we offer our existing customers and to bring our leading capability and expertise to customers and markets around the world.”

The board of Global Marine will be strengthened with the addition of Dick Fagerstal as executive chairman. He brings a wealth of industry-relevant experience to the board alongside current directors Ian Douglas and Global Marine’s chief financial officer Bill Donaldson.

HC2 acquired Bridgehouse pursuant to a sale and purchase agreement between Global Marine Holdings LLC, a subsidiary of HC2, and the stockholders of Bridgehouse. The purchase price reflects an enterprise value of approximately US$260 million, including assumed indebtedness of Global Marine, and was funded through a new senior secured credit facility provided by Jefferies Finance LLC and a sale of convertible preferred stock to DG Capital Management LLC and another investor. The sale of preferred stock will also provide HC2 with additional working capital for general corporate purposes. OSJ