Cal Dive Announces Sale of its U.S. Gulf of Mexico Surface Diving Fleet
June 03 2014 - 6:08PM
Business Wire
Cal Dive International, Inc. (NYSE:DVR) announced today the sale
of its U.S. Gulf of Mexico shallow water surface diving fleet to a
privately held company for cash of $18.5 million and a 19.9%
minority interest in the entity acquiring the assets. The assets
sold are comprised of eight surface diving vessels and
miscellaneous inventory and equipment. The Company anticipates
recording a gain during the second quarter as a result of the
transaction. Net proceeds from the sale were used to repay a
portion of the Company’s revolving credit facility. The Company
also entered into a multi-year alliance agreement with the buyer
under which the buyer will have the exclusive right to provide any
surface diving services required by the Company in the U.S. Gulf of
Mexico to support pipelay, decommissioning, platform installation
and other integrated services. This transaction is part of the
Company’s strategic plan to divest non-core assets, strengthen the
balance sheet and pursue opportunities that enhance shareholder
value.
In connection with the assets sold, the Company implemented cost
reductions in the first quarter 2014 and will realize additional
overhead cost reductions going forward as a result of the sale. The
assets sold represent less than 5% of the net book value of the
Company’s property and equipment and this transaction is expected
to have a minimal impact relative to consolidated financial results
expected for 2014.
Quinn Hébert, Chairman, President and Chief Executive Officer of
Cal Dive, stated, “This transaction is part of our ongoing efforts
to concentrate our financial and other resources on key strategic
initiatives. These include our U.S. Gulf of Mexico saturation
diving, pipelay and decommissioning and salvage operations and our
construction and diving services in key international markets such
as Mexico, Australia, Southeast Asia and the North Sea.”
About Cal Dive International, Inc.
Cal Dive International, Inc., headquartered in Houston, Texas,
is a marine contractor that provides manned diving, pipelay and
pipe burial, platform installation and salvage, and light well
intervention services to the offshore oil and natural gas industry
on the Gulf of Mexico OCS, Northeastern U.S., Latin America,
Southeast Asia, China, Australia, West Africa, the Middle East, and
Europe, with a diversified fleet of dive support vessels and
construction barges.
Cal Dive International, Inc.Brent Smith, (713) 361-2634Executive
Vice President, Chief Financial Officer and Treasurer
Cal Dive (CE) (USOTC:CDVIQ)
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