Strategic Marine sells shipyards in Singapore and Vietnam
Headquartered in Singapore and listed on the Singapore Mainboard Stock exchange, TRIYARDS is an offshore vessel fabrication and engineering company, providing offshore marine services solutions to the oil and gas (O&G) industry. It owns and operates fabrication yards in Ho Chi Minh City and Vung Tau in Vietnam, as well as yards in Houston, USA and Singapore.
The company said the acquisition of Strategic Marine (S) Pte Ltd and Strategic Marine (V) Co. Limited (Strategic Marine) from Henderson Marine Base Pty Ltd provided it with new capabilities, products and clients.
Incorporated in 2001, Strategic Marine had its origins in Geraldton Boat Builders, one of Australia’s leading aluminium boatbuilders. It initially focussed on offshore crew boats and support vessels, as well as high-speed patrol boats, later expanding its capabilities to offer larger, purpose-built and designed steel vessels as well as complex aluminium and steel structures for the marine infrastructure and mining sectors. Its two yards have a total area of 158,648m2 and will increase the TRIYARD’s yard capacity by over 67 per cent.
The Strategic Marine Vietnam yard is also strategically sited very close to TRIYARDS’ existing Vung Tau facility, offering operational synergies and room for growth.
Commenting on the deal, TRIYARDS’ Chief Executive Officer, Mr Chan Eng Yew, said: “Strategic Marine is a good fit for TRIYARDS as we work to build our name in fabrication and engineering solutions and move beyond the construction of oil and gas product lines adding capabilities and products which would target a wider clientele base.
“Besides immediately expanding our product range, we will also have access to the client and market base of Strategic Marine. On top of this, the increased yard space gives us flexibility to grow our ship repair and ship conversion income.
The cash deal was negotiated on a ‘willing buyer, willing seller’ basis and took into account the net asset value of the companies acquired, which was approximately $A19.7m. The combined net profit before tax of the two businesses for the 2013 calendar year was approximately $US7m.