American marine services business Seacor Holdings has purchased the remaining 49% stake in SEA-Vista joint venture (JV) from Avista Capital Partners.
Seacor paid circa $106m in cash and 1.5 million shares of its own common stock to become the sole owner of SEA-Vista JV.
SEA-Vista manages its commercial operations under the brand name Seabulk. The JV manages a fleet of nine US-flag petroleum and chemical carriers in the Jones Act, including the SEA-Chem 1, a modern, chemical parcel Articulated Tug and Barge unit.
SEA-Vista registered $18.2m of operating income and $31.3m of OIBDA for the six months ended 30 June 2019.
Sea-Vista’s current revenue backlog stands at $268.1m and extends into 2026. SEA-Vista had $77.9m of debt and $18.8m of cash as of 30 June 2019.
Commenting on the deal, chief operating officer of SEACOR Holdings Eric Fabrikant said: “We expect this transaction to be accretive to SEACOR’s earnings.
“We acquired a substantial backlog of contracted revenues and stable cash flows and increased ownership in SEA-Vista’s differentiated fleet of assets.
“Acquiring full ownership of SEA-Vista underpins our continued commitment to remaining a leader in the transportation and logistics industry.
“We appreciate the support of our former partner, Avista, during our new build programme and our shared mission to building a safer, more environmentally friendly, fleet of modern vessels,” he said.
Regarding the purchase, both Seacor and Avista Capital entered a registration rights agreement that grants the holders of the consideration shares certain demand and piggyback registration rights and a lock-up agreement.
The agreement restricts the seller to dispose of consideration shares for certain periods and imposes certain standstill obligations on the seller.