J. Ray McDermott Completes Acquisition of Secunda Assets
31 July 2007 - 12:33AM
Business Wire
McDermott International, Inc. (NYSE:MDR) (�McDermott�) announced
today that an affiliate of its subsidiary, J. Ray McDermott, S.A.
(�J. Ray�), has completed its previously announced acquisition of
substantially all of the assets of Secunda International Limited
("Secunda"), including 14 harsh-weather, multi-functional vessels,
with capabilities which include subsea construction, pipelay, cable
lay and dive support, as well as its shore base operations, for
approximately $260 million. �We are pleased to complete this
purchase and to begin integrating certain of these assets into J.
Ray�s strong backlog of offshore oil & gas construction
projects,� said Bob Deason, Chief Executive Officer of J. Ray.
�With Secunda, J. Ray enhances the ability to utilize its larger
marine assets for higher value activities, increases the number of
activities which can be self-performed, and additionally, supports
its growing subsea development activities.� McDermott is an
engineering and construction company, with specialty manufacturing
and service capabilities, focused on energy infrastructure.
McDermott�s customers are predominantly utilities and other power
generators, major and national oil companies, and the United States
Government. With its global operations, McDermott operates in over
20 countries with more than 20,000 employees, and can be found on
the internet at www.mcdermott.com. In connection with the approval
under the Investment Canada Act, J. Ray�s acquiring subsidiary made
certain commitments to the Minister of Industry, which highlight
the net benefit to Canada that will result from the acquisition.
These include commitments to maintain Secunda�s former headquarters
as well as the existing management team in Dartmouth, Nova Scotia
and to increase capital expenditures to maintain and upgrade the
vessel fleet. Additionally, J. Ray�s presence in the Atlantic
Canada region will bring to the area�s oil and gas industry a new,
local fully-integrated EPCI contractor for future field
developments. In accordance with the Safe Harbor provisions of the
Private Securities Litigation Reform Act of 1995, McDermott
cautions that statements in this presentation that are
forward-looking and provide other than historical information
involve risks and uncertainties that may impact the actual results
realized from the asset purchase. The forward-looking statements in
this presentation include statements regarding the expected
benefits from this acquisition. Those statements are made based on
various underlying assumptions and are subject to numerous
uncertainties and risks, including, without limitation,
difficulties in integrating Secunda assets and employees with J.
Ray�s operations.
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