The deal is for US$108 million and includes 82 remotely operated vehicles (ROVs) - 54 work class and 28 observation class ROVs.
According to John Huff, Oceaneering's Chairman and CEO, "We are extremely pleased to have reached a conditional agreement with Subsea 7 to acquire an exceptional operation."
"We look forward to integrating these assets and talented individuals into our existing ROV organisation and increasing Oceaneering's international business exposure to deepwater exploration, development, and production activities.
"The pending acquisition of these ROVs and related tooling engineering capabilities will substantially enhance our existing worldwide market leadership position in providing oilfield ROV services. Our oilfield work class ROV fleet size will increase by 40%, from 125 to 179 vehicles," added Huff.
As part of the agreement, Oceaneering not only gets the ROVs but related contracts and employees and significant subsea engineering, tooling, and products capabilities and capacity from Subsea 7.
This acquisition is expected to bring about around US$70 million in revenues and about US$10 million to US$12 million in operating income, with an estimated US$10 million in depreciation and amortisation expenses.
However, this deal will only occur in early 2004 and, despite the respective boards of both Oceaneering and Subsea 7 agreeing to the deal, everything is only signed, sealed and delivered if pre-agreed conditions are met.