Financial services company HC2 Holdings has entered into an agreement with JF Lehman (JFLCO) to sell a 100% stake in Global Marine Group (GMG), a UK-based offshore engineering services provider, for $250m.

HC2 holds 73% in Global Marine Group, while Fugro holds a 23.6% stake. The deal includes the sale of GMG’s subsidiary Global Marine Systems, offering engineering services to telecommunications, renewables and oil & gas industries, along with several joint ventures.

However, the sale excludes the previously announces sale of GMG’s 49% joint venture with Huawei Marine Networks (HMN).

Global Marine Group CEO Ian Douglas said: “We’re about to embark on a new chapter for Global Marine Group, and I want to thank the HC2 team for being effective owners of our business.  The purchase by JFLCO provides the certainty that we need to continue to build our business across the telecommunications and utilities markets, deepening and widening the service we provide to our customers.

“We are fortunate to operate in markets that are transforming the world and we support the rising demand for connectivity of global communications and offshore renewable energy sources.”

Total valuation of HC2’s Marine Services Segment is $390m

Subject to customary closing conditions, the deal is expected to be closed by the end of this year’s first quarter.

The deal also has scope for potential future earn-out that depends on JFLCO and its affiliates obtaining specified multiple for their invested capital.

Combined with the previously announced sale of GMG’s stake in HMN for $140m, the total valuation of HC2’s Marine Services Segment is $390m.

HC2 chairman, president and CEO Philip Falcone said: “We are energized to start off 2020 with the completion of the sale process, and there is no question that our patience and persistence has been rewarded with a very strong outcome for HC2 stakeholders.

“Over the last five years, we have built a tremendous leading company in the marine services industry, led by Ian Douglas and his GMG team, and we know they will continue to build on their success while under the JFLCO umbrella.”

In June 2019, GMG, supported by its business units Global Marine, Global Offshore and CWind, had signed a framework agreement for cable repair with offshore wind farm developer and operator Ørsted.