Gulf Island subsidiary to acquire Leevac assets

The following is the text of a news release from Business Wire:

(HOUSTON) — Gulf Island Fabrication Inc. has announced that Gulf Island has executed an asset purchase agreement with Leevac Shipyards LLC and its related affiliates under which Leevac will sell to a Gulf Island subsidiary substantially all of Leevac’s assets, including Leevac’s leasehold interests at its marine fabrication facilities in Jennings, La., and Lake Charles, La., and substantially all of Leevac’s machinery and equipment. In addition, the transaction would provide approximately $112 million of incremental contract backlog. The purchase price is $20 million.

The potential transaction is subject to a working capital adjustment under which Gulf Island would receive at closing a dollar-for-dollar reduction for the assumption of certain net liabilities of Leevac and settlement payments from sureties on certain ongoing fabrication projects that will be assigned to Gulf Island in the transaction. After taking into account these adjustments, Gulf Island expects to pay a nominal amount of cash at closing and may, in the alternative, receive cash at closing. The potential transaction is subject to certain customary closing conditions and is expected to close at the end of the fourth quarter of 2015 or beginning of the first quarter of 2016.

Kirk Meche, president and chief executive officer of Gulf Island, said that “the acquisition of the Leevac assets further diversifies our business, enhances our marine fabrication and maintenance and repair capabilities, and provides our company with facilities in key strategic locations of Lake Charles and Jennings, La.”

PPHB LP acted as exclusive financial adviser to Gulf Island in the transaction. Gulf Island was advised on legal matters exclusively by Jones Walker LLP.

Gulf Island Fabrication Inc., based in Houston, Texas, with fabrication facilities located in Houma, La., and San Patricio County, Texas, is a leading fabricator of offshore drilling and production platforms, hull and/or deck sections of floating production platforms and other specialized structures used in the development and production of offshore oil and gas reserves. These structures include jackets and deck sections of fixed production platforms; hull and/or deck sections of floating production platforms, piles, wellhead protectors, subsea templates and various production, compressor and utility modules, offshore living quarters, towboats, lift boats, tanks and barges. The company also provides offshore interconnect pipe hook-up, inshore marine construction, manufacture and repair of pressure vessels, heavy lifts such as ship integration and TLP module integration, loading and offloading of jack-up drilling rigs, semi-submersible drilling rigs, TLPs, SPARs, or other similar cargo, onshore and offshore scaffolding, piping insulation services, and steel warehousing and sales.

By Professional Mariner Staff