Oceaneering International agreed to acquire C & C Technologies, Inc. (C&C), a provider of survey services, for approximately US$230 million in cash.
Headquartered in Lafayette, Louisiana, C&C Technologies offers ocean-bottom mapping services in deepwater utilizing customized autonomous underwater vehicles and provides marine construction surveys for both surface and subsea assets, as well as satellite-based positioning services for drilling rigs and seismic and construction vessels. The company also provides land and near-shore survey services along the US Gulf Coast and in Mexico, and performs shallow water conventional geophysical surveys in the US Gulf of Mexico.
Oceaneering anticipates that the acquisition to be completed in early April 2015. After closing, the company says it expects C&C to generate $20 million to $30 million of EBITDA, before integration costs, and to be accretive to earnings. Oceaneering plans to include C&C’s financial results in its Subsea Projects segment.
M. Kevin McEvoy, President and CEO of Oceaneering stated, “We are pleased to have entered into an agreement to acquire C&C, as we believe this transaction is a unique opportunity to strategically expand our service line capabilities and underwater service offerings. C&C’s services are used in all of the major phases of an offshore field life cycle, particularly in exploration and development, and are highly complementary with Oceaneering’s products, services, capabilities and areas of expertise. Benefits we anticipate include: increased use of our remotely operated vehicles and vessels to support survey services; enhancement of our ability to secure subsea asset integrity work on pipelines, including x-ray and ultrasonic inspections, which could pull through additional demand for tooling and pipeline repair systems; and increased demand for our video and data solutions service.
“We are looking forward to the contributions that the more than 550 C&C personnel will make to our operations and growth. In addition, we expect to achieve cost savings and revenue synergies as we integrate C&C’s operations and bring its services to new markets by leveraging our extensive international footprint.”
Oceaneering also announced that Thomas Chance, co-founder and President of C&C, agreed to remain with the company for at least a year, to facilitate the transition.
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