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Fugro sells trenching and cable laying business

Seismic player inks deal with Global Marine Group for $65 million equity stake

Seismic player Fugro has signed an agreement to sell its trenching and cable laying business to subsea-focused Global Marine Group (GMG).

Under the deal, Fugro will acquire an equity stake of around 24% in the combined “ non-core marine construction and installation ” business valued at $65 million, and a one year secured vendor loan of $7.5 million.

New York-listed GMG is a supplier of subsea cable installation and maintenance services in telecoms, offshore renewables, power and oil & gas.

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Following the sale, Fugro said it will participate in a more diversified business in which cable installation services are complemented with long-term telecom cable and wind farm maintenance services.

In addition, the group will become the preferred provider of marine site characterisation and asset integrity services to GMG.

The deal involves the transfer of 23 Aberdeen based employees, one vessel (Fugro Symphony), two trenchers and two remotely operated vehicles, Fugro said.

The transaction is expected to close in the fourth quarter.

“A key objective of Fugro’s strategy is to seek a partnership or divest our construction and installation related marine activities. We have taken a major step forward in delivering on this strategic objective by contributing our trenching and cable laying business towards a promising partnership with GMG,” Fugro chief executive Paul van Riel said.

“This step will also support Fugro’s further growth in the nautical market segment,” Van Riel added.