SEA-STRUCT manufactures, supplies and installs pipeline and cable stabilisation protection and erosion control products for the subsea oil and gas sector and the broader marine services market.

Neptune plans to settle the acquisition with $17 million plus a three year earn out based on future performance.

The payment will be a 70/30 mix of cash and new shares in Neptune.

SEA-STRUCT currently generates $9 million in annual revenues and $4 million in earnings before interest and taxes.

Neptune managing director Christian Lange said SEA-STRUCT was complementary to the company’s existing operations and was a good fit with the group’s integrated engineering services and solutions strategy.

“SEA-STRUCT is an excellent business and represents another growth channel for Neptune,” he said.

“The business products are highly regarded in the subsea oil and gas sector and they are complementary with Neptune’s existing subsea pipeline engineering and maintenance services.”

SEA-STRUCT provides offshore grouting equipment and personnel for freespan correction works as well as the SEAMAT range of precast concrete mattresses that are used to support, protect and stabilise subsea oil and gas pipelines.

The SEAMAT range of concrete stabilisation products are manufactured and supplied to most countries within South-East Asia.

Neptune expects the acquisition to be immediately earnings per share accretive upon completion.

Neptune has grown from a small underwater welding business into a mid-sized company with a diverse range of subsea and marine inspection, repair and maintenance services.

Its most recent completed acquisitions were takeovers of North American commercial diving contractor US Underwater Services (USUS), which is based in Dallas, Texas and operates mainly in the Gulf of Mexico and of Tri-Surv, a Perth-based specialist hydrographic surveying company with operations in Western Australia and New Zealand.