HM MOS, Seafox Form Jack-Up ASV Company

HM MOS International Limited, parent company of Millennium  Offshore Services Superholdings LLC,  and Seafox Group, parent company of Seafox Contractors and  Workfox, will combine to form what they claim is the world’s largest offshore jack-up accommodation service vessels (ASV) and support company.

The merged group will have a global reach spanning Europe, the Middle East & North Africa  (MENA), and Asia Pacific Regions. The newly formed company will operate under the brand name  Seafox.

According to a joint statement by the companies,  by joining forces, the Group is uniquely positioned for further growth, combining Millennium Offshore  Services’ and Seafox Group´s complimentary regional and fleet operations.

The Company offers the  largest offshore support jack-up fleet in the world, the statement further reads, operating 12 jack-up ASV and offshore support  units.

The Group promises end users will benefit from its geographical spread and in-depth knowledge of the regional  markets as they will be serviced by highly experienced local offshore and onshore staff totalling  approximately 700 employees.

The combined fleet meets all client and statutory regulatory  requirements, enabling customers to operate under all conditions whilst remaining cost effective.  Seafox will be in an excellent position to meet customers’ current and future needs by having an  expanded fleet and services portfolio.

The newly formed company has combined EBITDA of approximately USD 200 million with 45% of  revenues generated from the European operation, 35% from MENA and 20% from Asia Pacific.  The combined backlog of the group as of September 30th , 2014 is USD 777 million, which, the announcement reads, provides  excellent visibility for future revenue, and puts Seafox in a prime position to consolidate its position  in the market and provides a robust platform for potential future growth.

As part of the transaction, a consortium of investors, consisting primarily of leading investors from the  Middle East who are current shareholders in HM MOS International Limited will acquire the majority  of shares in Seafox from its current owners, the Cordia and Van der Lely families and NPM Capital.

The  current shareholders of Seafox Group remain committed through a minority share in the new  combination.

A new Senior Executive Committee, comprising key members of the existing Millennium Offshore  Services and Seafox Group management teams, will be formed, with Robert Duncan becoming Group  Chief Executive Officer.

Keesjan Cordia, the current CEO of Seafox will retain his executive role in  Seafox group during a transitional period, after which he will join the Advisory Board of Seafox.

Keesjan Cordia stated: “This combination is a unique growth opportunity for Seafox Group. Over the  past few years our organisation has more than tripled in size and established a solid reputation. This  transaction is a milestone for Seafox Group and its employees and a testimony to the organisations  competence, both on and offshore. I want to thank the entire team including the stakeholders for their  commitment and contributions to the success of the company.  I am confident that the new consortium of reputable investors together with current Seafox  shareholders provides the group with a strong fundament to realize the next phase of growth.  Together, we are solidly positioned to support our clients in both the oil & gas and renewable energy  industries and to be able to act upon current and future market developments.”

Robert Duncan, comments: “We are excited about the opportunities this merger brings for the  combined companies and our existing and potential customers. Our jack-up ASV and service operations  are greatly complimentary and will instantly increase availability, fleet diversity and flexibility for  existing and future customers. This particular market is ready for consolidation and we are delighted  to be at the forefront of it. Our balance sheet and investor base provide us with an opportunity to fund  further expansion on an opportunistic basis.”

For this transaction Seafox Group was advised by KPMG and Loyens & Loeff. HM MOS International  was advised by ABN Amro, EFG-Hermes, Goldman Sachs and Freshfields.

Press release; Image: workfox