Cadeler, Eneti to Form New Offshore Wind Installation Company

June 16, 2023, by Adnan Memija

Offshore wind turbine and foundation installation companies Cadeler and Eneti have signed a business combination agreement to establish a new company. The parties said this will enable them to operate more efficiently and target larger and more complex projects as requested by customers.

They agreed to merge through a stock-for-stock exchange offer to be made to all stockholders of Eneti based on an exchange ratio of 3.409 Cadeler shares for each Eneti share.

Following the completion of the exchange offer, Cadeler and Eneti shareholders will own approximately 60 per cent and 40 per cent of the combined company, respectively.

“The combination will represent a significant step up in our ability to meet the increased demand globally for projects with larger scopes and project sizes in service of the much-needed green transition,” said Mikkel Gleerup, CEO of Cadeler.

“To deliver on this ambition, we will provide our customers with the largest and most diverse fleet in the industry, operated by highly skilled teams with unique expertise and track records. For customers, the combined fleet will unlock unrivalled value due to increased cross-utilization of resources and improved flexibility, capacity, and agility.”

The combined group will be named Cadeler and will be headquartered in Copenhagen, Denmark.

Gleerup will continue as CEO of the combined company while Cadeler’s Peter Brogaard Hansen will continue as Chief Financial Officer and Andreas Sohmen-Pao as Chairman. Emanuele Lauro, CEO of Eneti, will be nominated as Vice Chairman.

The combination is expected to close in the fourth quarter of 2023, subject to regulatory approvals. Eneti said that the combination will result in the largest diversified fleet owned and operated by a single pure-play offshore wind turbine and foundation installation company.

Until the merger has closed, both companies will continue operations as two separate entities.

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The Eneti fleet consists of five wind turbine installation vessels (WTIVs) currently on the water and two WTIVs scheduled for delivery in the fourth quarter of 2024 and the second quarter of 2025.

Of the five vessels on the water, three of the vessels are non-core assets and subject to divestment before or after completion of the combination.

The five WTIVs are: Seajack Zaratan, Seajacks Hydra, Seajacks Leviathan, Seajacks Kraken, and Seajacks Scylla.

The first of two NG16000X WTIVs is currently under construction at Daewoo Shipbuilding and Marine Engineering in Korea.

Nessie and her sister vessel Siren will be capable of installing up to 20-megawatt turbines at depths of up to 65 metres of water.

Eneti said that, upon delivery of the six vessels under construction and disposition of the three non-core assets, the combined company will have a fleet of ten vessels.