Singapore-based TRIYARDS Holdings Ltd, a builder of specialized offshore vessels and mobile drilling units announced today it will be expanding through the acquisition of Western Australia’s Strategic Marine for a total consideration of A$23.3 million.
Strategic Marine has been building aluminum and steel vessels as well as complex aluminium and steel structures for the marine infrastructure and mining sectors for over 10 years. Its two yards – one in Vung Tau, Vietnam, and the other in Singapore –with a total area of 158,648 m2 will increase Triyard’s yard capacity by over 67% (excluding Houston). Strategic Marine’s Vietnam yard (area: 147,600 m2) is also strategically sited very close to TRIYARDS’ existing 134,000 m2 Vung Tau facility and offers operational synergies and room for growth.
TRIYARDS’ Chief Executive Officer, Mr Chan Eng Yew, commented on the acquisition: “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 & 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 deal was funded by cash and the Group’s recent share placement proceeds of S$20.65 million. The share placement, in which 29.5 million new shares were issued at S$0.70 each, was completed on 29 September 2014.
Commenting on prospects, Mr Chan said: “Our future earnings will be enhanced by our newly acquired aluminium shipbuilding and fabrication capabilities and the rising momentum of our liftboat contract wins. We have set our sights to be one of the few Asian players able to construct hybrid steel and aluminium vessels and complex