Sembcorp Marine Integrated Yard (SMIY), a subsidiary of Singapore-based Sembcorp Marine, has signed a sale and purchase agreement to acquire LMG Marin (LMG) for $20m in cash.
The consideration for the deal has been arrived at on a willing-buyer willing-seller basis, after considering the estimated net tangible asset value of $3.8m as on 31 July, and intellectual property and patents of LMG.
Once completed, Norway-based LMG will become an indirect wholly-owned subsidiary of Sembcorp Marine, which has a portfolio of various design patents, and is specialised in naval architectural design, engineering and technology development.
With offices in Poland and France, LMG also designs floating structures, platforms and a wide variety of ship types, including drillships; floating production, storage and offloading vessels (FPSO); floating storage and offloading vessels (FSO); offshore support vessels (OSV); liquefied natural gas (LNG) carriers; LNG-powered ships; car ferries; and cruise ships.
Sembcorp Marine president and CEO Wong Weng Sun said: “Through the strategic acquisition of LMG, Sembcorp Marine further strengthens its intellectual property and knowledge to execute leading-edge design and engineering solutions for the global offshore and marine sectors.
“This in turn supports our ongoing efforts to move up the value chain so that we can compete better and do more for our customers and partners.”
The company has already been using various LMG-developed designs, which includes the next-generation Espadon drillship design; the FSO design used in the ongoing construction of the company’s newbuild FSO for deployment in the UK North Sea.
Sembcorp Marine has also used designs developed by LMG for its Gravifloat modular LNG and liquefied petroleum gas (LPG) platform solutions, which are an alternative to floating storage regasification unit (FSRU), floating liquefied natural gas (FLNG) and land-based terminals.
With shipyards in Singapore, India, Indonesia, the UK and Brazil, Sembcorp Marine provides innovative engineering solutions to the global marine and offshore industry.