The deal will allow Eneti to have five WTIVs on-the-water and another high-specification newbuilding scheduled for delivery in 2024
Eneti, through its subsidiary, has reached a binding agreement with Marubeni, INCJ, and Mitsui O.S.K. Lines, to acquire Atlantis Investorco, which owns Seajacks International.
The transaction consideration includes nearly 8.13 million shares, $299m of assumed net debt, $74m of newly-issued redeemable notes, and $12m in cash.
Upon closing, existing Eneti shareholders are expected to own 58% of the wind turbine installation vessels (WTIVs) provider, while the sellers Marubeni, INCJ, and Mitsui O.S.K. Lines would own 42%.
Marubeni general manager Hiroshi Tachigami said: “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.”
Formed in 2006, Seajacks is a provider of self-propelled jack-up vessels, and is said to be the world’s largest owner of purpose-built self-propelled WTIVs.
The company’s NG14000X design ‘Seajacks Scylla’ is currently deployed in Asia and its NG5500C design ‘Seajacks Zaratan’ is being operated in the Japanese market.
In addition, Seajacks has three NG2500X design WTIVs in the North Sea market.
According to projected earnings from existing and projected employment, Seajacks is expected to have EBITDA of around $125m in 2021.
Seajacks CEO Blair Ainslie said: “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.”
Eneti has secured a commitment from ING Bank for up to $60m revolving credit facility to fund the transaction consideration.
The transaction is expected to be completed in third quarter of 2021.
With the acquisition, Eneti will have five WTIVs on-the-water and another high-specification newbuilding scheduled for delivery in 2024.
Eneti chairman and chief executive officer Emanuele A Lauro said: “This transaction reflects the biggest step yet in our transformation into a world-class contractor for offshore wind.
“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.
“We welcome our new shareholders from Japan, and we welcome Hiroshi and Peter to our Board of Directors. The Company starts a new phase with modest leverage and considerable levels of contract cover.”