Emanuele Lauro led Eneti Inc. (NYSE: NETI) is poised to change from being a WTIV new entrant to being the biggest player in the offshore wind turbine installation market. It has reached an agreement to acquire U.K. based Seajacks International, which has five WTIVs on the water and which is also assisting with construction and operations oversight of the advanced Jones Act WTIV that Dominion Energy has under construction at the Keppel AmFELS yard in Brownsville, Texas.
“This transaction reflects the biggest step yet in our transformation into a world-class contractor for offshore wind,” said Lauro. “Seajacks is a market leader with a fleet of five advanced jack-up vessels; via this combination we will gain the valuable support of Seajacks shareholders who now become Eneti shareholders; moreover what is central to this combination is the committed and experienced professionals who join our team. Seajacks has successfully installed 2.2 GW of offshore wind capacity since its inception.
“Their organization has delivered on complex projects for demanding customers in the most difficult operating environments. We are truly excited to be able to work with the Seajacks management team to build on these accomplishments, creating the world’s leading owner and operator of WTIVs listed on the New York Stock Exchange.”
Eneti, the former Scorpio Bulkers, has a high end WTIV on order at Daewoo Shipbuilding and Marine Engineering in South Korea.
On completion of the acquisition, current Eneti shareholders will own approximately 58% of Eneti, and the current owners of Seajacks will own approximately 42% and will appoint two additional directors to the Eneti Board.
The deal will see a wholly owned Eneti subsidiary acquire 100% of Atlantis Investorco Limited, the parent of Seajacks International Limited from Marubeni Corporation, INCJ, Ltd. and Mitsui O.S.K., Lines Ltd. for a consideration of approximately 8.13 million shares, $299 million of assumed net debt, $74 million of newly-issued redeemable notes, and $12 million of cash.
As a result of the transaction, Hiroshi Tachigami of Marubeni Corporation and Peter Niklai of INCJ, Ltd. will join the Eneti Board of Directors.
As part of the transaction, Eneti has received a commitment from ING Bank N.V. for a senior secured non-amortizing revolving credit facility of up to $60 million.
Hiroshi Tachigami, of Marubeni Corporation, commented, “Eneti is the right partner for our exceptional Seajacks team. Combining Eneti with Seajacks will deliver strategic and financial value to all shareholders. Marubeni Corporation, as well as INCJ, Ltd. and Mitsui O.S.K., Lines Ltd., are delighted to become shareholders in Eneti and participate in the next phase of expansion in the fast-developing offshore wind sector.”
Blair Ainslie, CEO of Seajacks, commented “We are pleased to partner with Eneti to drive the future growth of the business and consolidate our position as a world leader in offshore wind turbine installation.”
If you want to wade deeper into the financial thickets of the deal, there’s more on that HERE