Secunda Marine located in Halifax NS, announced that it has been sold to a US company in the front page of the local paper.
Secunda Marine sold to U.S. firm in $260m deal
By TOM PETERS Business Reporter
Dartmouth-based Secunda International Ltd. has been sold to a major U.S. marine energy services firm.
J. Ray McDermott, S.A., a subsidiary of McDermott International Inc. of Houston will purchase Secunda for about US$260 million.
Secunda’s President Fred Smithers said Monday the transaction “was an opportunity for the company to go forward.”
The deal consists of all of Secunda’s assets including 14, multi-functional vessels with capabilities that include sub-sea construction, pipe laying, cable laying and dive support vessels as well as shore based operations.
McDermott works in the global oil and gas industry. Its parent, McDermott International, is an engineering and construction company with specialty manufacturing and service capabilities focused on energy infrastructure.
Mr. Smithers said his son Dwayne, now a senior vice-president, will manage the company for the new owners and he will remain for a period as a consultant.
Secunda is a Nova Scotia company which started with one vessel in 1983. It will continue to operate under its own name. It has about 400 employees who will keep their jobs.
Mr. Smithers, a company founder who said it was a difficult decision to sell, said he believes it is the best way for the company to grow.
“I think the opportunities for not just Secunda but for the province for employment, for people working on their projects worldwide, are unlimited,” he said.
“We would like to get some younger people, fresh ideas and more enthusiasm and energy and that is what it takes. We have an opportunity now I could never have provided for this company.”
Secunda had earnings of $56.6 million in 2005 with net income of $4.2 million, according to an online profile.
Mr. Smithers tried to take Secunda public last year but was unsuccessful. Robert Deason, McDermott’s President and COO, said Monday his company has been impressed with Secunda’s people and organization.
“People are hard to find, particularly people who understand the sea,” he said, adding Secunda “can really help grow our business. We think we can help grow their business.”
The two companies have worked periodically in the offshore for more than 20 years.
Mr. Deason said the relationship “fits like a glove.”