HC2 buys cable ship operator Global Marine

Global Marine fleet includes cable lay ship CS Sovereign Global Marine fleet includes cable lay ship CS Sovereign

SEPTEMBER 23, 2014 — Herndon, VA, headquartered HC2 Holdings, Inc. ("HC2") (OTCQB: HCHC) has acquired Bridgehouse Marine Limited, the parent holding company of Global Marine Systems Limited.

With a fleet of seven cable laying vessels and specialized subsea trenching and burial equipment, Global Marine is a leading provider of engineering and underwater services relating to subsea cable installation, maintenance and burial requirements of customers around the world. Its main operating offices are in Chelmsford, U.K. and Singapore.

Philip Falcone, HC2's Chairman, President and Chief Executive Officer, stated, "We are acquiring the world's most experienced undersea cable installation and maintenance services provider at a time when significant opportunities exist globally in terms of Telecoms, Oil & Gas and Offshore Power requirements for subsea cabling expertise. This investment in a truly global industry leader gives us the opportunity to support the growth plans of a proven management team."

"I am delighted that our ambitions for Global Marine have the support of an investor that has the vision necessary to enable us to realize the substantial growth potential in the coming years," said Ian Douglas, Chief Executive Officer 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. Mr. Fagerstal 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 $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.

Want more? Subscribe now!

News from NASDAQ